CAN REGIONAL INTEGRATION AND REMITTANCES ALLEVIATE ENERGY POVERTY? EVIDENCE FROM BRI COUNTRIES

Abstract

Energy accessibility is crucial for achieving social welfare and sustainable development. Therefore, to reduce energy poverty policy makers should emphasize key elements. In this study we used two stages least squares (2SLS), instrumental variable method and panel fixed and random effects method and investigated the effects of workers’ remittances and regional integration on energy poverty in 112 BRI countries from 2000 to 2020. Our findings revealed that energy poverty can be reduced through remittances and regional integration. Moreover, we observe that urbanization, economic growth, income poverty, and financial development are important mediating factors which effects energy poverty for both rural and urban populations. Our results also indicate that while rising income inequality and energy intensity influence energy poverty improved financial development, higher economic growth, and urbanization tend to decrease energy poverty. According to our findings, some suggestions are provided for achieving sustainable development goal no 7 to governments and policy makers which objects to the ease and accessibility of affordable and modern energy for rural and urban populations.