The Impact of Greenfield Investment in Renewables on Energy Poverty

Abstract

In the context of the global energy transition and the continuous advancement of sustainable development goals, how Renewable Energy Greenfield Investments can improve energy accessibility, reduce energy use costs and alleviate energy poverty has become an important issue in energy economics research.This study investigates the impact of Renewable Energy Greenfield Investments on energy poverty using panel data from 153 countries from 2003 to 2023.This study employs a two-way fixed effects model and further conducts endogeneity tests and a series of robustness checks. The results provide the following observations. First, Renewable Energy Greenfield Investments significantly reduces energy poverty. Second, its mitigating effect varies across countries and regions. Third, the effect shows greater strength in non-high-income countries. Moreover, the mechanism analysis based on the interaction between Renewable Energy Greenfield Investments and electricity consumption indicates that Renewable Energy Greenfield Investments plays a stronger role in alleviating energy poverty in countries with lower electricity consumption levels.Hence, this research provides stronger support for the role of Renewable Energy Greenfield Investments in mitigating energy poverty. This paper further delves into the policy implications arising from the findings.