Financial inclusion, natural disasters and energy poverty: Evidence from China

Using China Family Panel Studies data, this paper examines how financial inclusion affects energy poverty in China. We find substantial evidence that financial inclusion has a significant impact on reducing all three measures of energy poverty. In particular, the positive role of financial inclusion on energy poverty reduction can be also found in the presence of natural disasters. Results are further substantiated by a set of robustness checks as well as an instrumental variable strategy and propensity score matching strategy to address for the potential self-selection bias. In the end, heterogeneous effects and the underlying mechanism are explored.