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Can remittances alleviate energy poverty in developing countries? New evidence from panel data

journal contribution
submitted on 2024-01-22, 10:04 and posted on 2024-01-22, 12:36 authored by Karim Barkat, Mouyad Alsamara, Karim Mimouni

Universal energy access in developing countries is a key ingredient to achieve sustainable economic growth and social welfare. Therefore, it is of paramount importance for policymakers to identify potential new factors to mitigate energy poverty. In this study, we investigate the effects of workers' remittances on energy poverty in 109 developing countries from 2000 to 2019 using panel fixed and random effects as well as the system generalized method of moment and Lewbel (2012) estimators to address potential endogeneity problems. We demonstrate that remittances can be effectively used to alleviate energy poverty in low and middle-income countries. Moreover, we find that income poverty, human development, institutional quality, and income inequality are important mediating channels through which remittances affect energy poverty. Our results also indicate that improved financial development and increased urbanization tend to enhance energy access. Based on our findings, several recommendations are provided to governments and policymakers for achieving sustainable development goal target 7.1, which aims to guarantee affordable, reliable, and modern energy services for all.

Other Information

Published in: Energy Economics
License: http://creativecommons.org/licenses/by/4.0/
See article on publisher's website: https://dx.doi.org/10.1016/j.eneco.2023.106527

Funding

Open Access funding provided by the Qatar National Library.

History

Language

  • English

Publisher

Elsevier

Publication Year

  • 2023

License statement

This Item is licensed under the Creative Commons Attribution 4.0 International License.

Institution affiliated with

  • Qatar University
  • College of Business and Economics - QU