Economic Policy Uncertainty, Financial Expenditure and Energy Poverty: Evidence Based on a Panel Threshold Model

Che, Xiahui; Jiang, Minxing

doi:10.3390/su132111594

Cited by 6 publications

(7 citation statements)

References 24 publications

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“…However, there are differences with respect to taxes. This is in line with the findings of Che and Jiang [49] and Nagaj [86] that government financial spending has a significant positive impact on alleviating fuel poverty. Similar to Fragkos et al [72], it was also found that taxes imposed on energy products can increase the risk of fuel poverty.…”

Section: Discussionsupporting

confidence: 92%

“…Hence, in the context of studying fuel poverty, the share of energy from renewable sources is an important factor. In addition, the literature indicates [49,72,73] that energy and climate policies themselves can affect citizens' incomes, just as economic prosperity affects the amount of energy consumed and the environmental impact of sectors [84]. For this reason, when establishing a list of independent variables affecting fuel poverty, it is important to keep in mind the interdependence between factors.…”

Section: Methodsmentioning

confidence: 99%

“…This results in the instruments used by the state being either badly targeted or the mitigation measures being applied with an overly reduced budget. However, the government should not abandon its policy of influencing fuel poverty because, as Che and Jiang [49] point out, analysing political and economic uncertainty, the financial expenditure that the government spends has a significant positive impact on alleviating fuel poverty. Moreover, this impact is felt more in emerging economies than in developed economies.…”

Section: Determinants Of Fuel Poverty and Policies To Reduce Itmentioning

confidence: 99%

“…There are no studies on the impact of monetary policy, including individual policy instruments such as short-term interest rates, long-term interest rates, currency in circulation (outside banks), and money supply. Since, as Che and Jiang [49] point out, financial spending has a significant positive impact on fuel poverty alleviation, it can be presumed that monetary policy instruments may also play a role in driving fuel poverty mitigation policy. Thus, this manuscript will, on one hand, provide information on the impact of monetary policy instruments on this phenomenon and, on the other hand, provide scope for a new line of future research in the area of this topic.…”

Section: Introductionmentioning

confidence: 99%

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Macroeconomic Policy versus Fuel Poverty in Poland—Support or Barrier

Nagaj

2022

Energies

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: Energy and climate policies play an increasingly important role in the world in the era of climate change and rising energy prices. More often, the importance of the development of the energy sector and climate protection is seen from the point of view of the expenditures that will need to be absorbed in the economy, with the potential for increased energy prices. However, it should be remembered that this is also related to the issue of fuel poverty and the inability to meet basic energy needs by parts of society. The aim of the paper is to assess the importance of macroeconomic policy instruments in reducing fuel poverty, using Poland as an example. It will be examined whether and how the government influenced this phenomenon (directly or indirectly), through which instruments, and which instruments (fiscal, monetary or energy-climate policy) played the most important role in shaping the scale of fuel poverty in Poland, with an emphasis on the role of monetary and fiscal policy instruments. The analysis covered the period from 2004 to mid-2021. The results of the research showed that in Poland there is a lack of policy directly aimed at reducing fuel poverty, and the government affects the scale of fuel poverty indirectly mainly through macroeconomic policy instruments, i.e., fiscal and monetary policy instruments. The main and most effective instruments for reducing fuel poverty in Poland are social transfers. Other instruments that have a statistically significant impact on this poverty rate are the level of tax burdens and short-term interest rates. The analysis also revealed some opportunities for effective fuel poverty reduction policies. It was proven that in addition to fiscal policy, monetary policy, which would stimulate a decrease in short-term interest rates, is also an effective way to reduce the fuel poverty rate in Poland.

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Section: Discussionsupporting

confidence: 92%

Section: Methodsmentioning

confidence: 99%

Section: Determinants Of Fuel Poverty and Policies To Reduce Itmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Macroeconomic Policy versus Fuel Poverty in Poland—Support or Barrier

Nagaj

2022

Energies

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“…This result highlights the need for more attention to public expenditure composition and energy poverty in future research studies. More recently, the empirical literature has emphasized the negative impact of economic uncertainty on various economic factors such as investment, economic growth, unemployment, and monetary and fiscal policy orientations (Xiahui and Minxing 2021 ; Siksnelyte-Butkiene 2022 ). As a potential future perspective, this work should focus on the role of global economic uncertainty in the dynamics of energy poverty and the influence of public expenditure.…”

Section: Discussionmentioning

confidence: 99%

Energy poverty, government expenditure, and institution factors in Sub-Saharan Africa countries: evidence based on a panel threshold model

Bousnina

Gabsi

2023

Environ Sci Pollut Res

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This article investigates the relationship between energy poverty and public expenditure for a sample of 20 Sub-Saharan countries over the period 2006–2020. This paper focuses on three research objectives. First is using a panel data threshold model with fixed effects proposed by Hansen (J Econom 93(2):345-368, 1999 ) to detect the presence of the nonlinear effect of public expenditure on energy poverty. Second, we try to explain the effect of public expenditure transmission channels on energy poverty. Third, we explore the impact of public expenditure on energy poverty considering the role of institution factors. Thus, our analysis approves the existence of a link between energy poverty and public expenditure with a threshold of about 17.65% of GDP. In addition, CO2 emissions can accelerate the growth of energy poverty in SSA countries. Indeed, the results show that in countries with high energy poverty, there is a bidirectional causal link between CO2 emissions and energy poverty. This would provide a better understanding of the relationship between public expenditure and energy poverty suggesting useful implications for policymakers in targeting sustainable energy.

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