Abstract:
A Panel Vector Autoregressive (PVAR) model is constructed based on China provincial panel data from 2007 to 2019 to explore the dynamic relationships between energy poverty, carbon emission reduction and income growth and the difference between the northern and southern China. Energy poverty is measured by night light data to avoid the subjectivity of energy poverty assessment and the boundary of household energy consumption is clarified to calculate carbon emissions associated with energy poverty. The results show that carbon emission reduction and energy poverty alleviation promote each other. However, carbon emission reduction has a temporary hindering effect on energy poverty, and energy poverty has a stronger alleviating effect on household carbon emission reduction in northern China. There is a mutual feed effect between income growth and energy poverty alleviation where the impact of energy poverty on income growth has a delay feature, and income growth will temporary aggravate energy poverty in northern China. Income growth promotes household carbon emission reduction, but carbon emission reduction does not have a significant impact on income growth. Additionally, income growth will lead to a increase in household carbon emissions in southern China.