The Impact of Urban Energy Poverty on Environmental Degradation: An Environmental Pollution Perspective

Abstract

This paper investigates the impact of urban energy poverty on environmental degradation from an environmental pollution perspective. Environmental degradation has been an issue of global concern for several years due to its alarming impact on the Earth's landscape, which prompted significant apprehension among environmental stakeholders. Energy poverty research rarely explores urban areas. This research investigates the unique contribution of urban energy poverty to environmental degradation. Annual panel data of South from 1991 to 2021 was used to estimate the influence of urban energy poverty on environmental pollution. The ARDL-PMG, FMOLS, and DOLS test methodologies are employed for analysis. Results showed that a 1% increase in urban energy poverty corresponds to a 0.32% increase in environmental pollution. Another significant finding is that Economic growth is a primary driver of pollution. The study revealed a positive relationship between urban energy poverty and environmental pollution, suggesting economic growth alone does not mitigate environmental degradation. Renewable energy consumption is crucial for environmental sustainability. Moreover, South Asian countries should set targets to eliminate energy poverty and encourage using clean energy by increasing their energy budget.