TY - JOUR
T1 - Financial inclusion's impact on energy poverty
T2 - Evidence from Indonesia
AU - Widyastuti, Aprilina Tri
AU - Hartono, Djoni
AU - Sidig, Danar Sutopo
AU - Rusmawati, Estiana
N1 - Publisher Copyright:
© 2023 The Author(s)
PY - 2023/12
Y1 - 2023/12
N2 - This study tests the association between financial inclusion and energy poverty in Indonesia. It adopts multi-dimensional energy poverty and financial inclusion measures employing the 2018 Statistics Indonesia data. The energy poverty measures cover six indicators, i.e., the primary cooking fuel, indoor air pollution, lighting, ownership of household appliances, and supporting essential services such as education, entertainment, and communication. On the other hand, the financial inclusion variable involves household access to banks, credit, and insurance. In testing the financial inclusion-energy poverty association, the present study performs the Two-Stage Least Square (2SLS) method, involving household distance to the nearest financial facilities as an instrument variable (IV) to overcome the potential endogeneity problem from the reverse causality between the financial inclusion and energy poverty. This analysis reports a robust negative and significant association between financial inclusion and energy poverty, bringing potential critical notes for Indonesia's policy formulation against energy poverty.
AB - This study tests the association between financial inclusion and energy poverty in Indonesia. It adopts multi-dimensional energy poverty and financial inclusion measures employing the 2018 Statistics Indonesia data. The energy poverty measures cover six indicators, i.e., the primary cooking fuel, indoor air pollution, lighting, ownership of household appliances, and supporting essential services such as education, entertainment, and communication. On the other hand, the financial inclusion variable involves household access to banks, credit, and insurance. In testing the financial inclusion-energy poverty association, the present study performs the Two-Stage Least Square (2SLS) method, involving household distance to the nearest financial facilities as an instrument variable (IV) to overcome the potential endogeneity problem from the reverse causality between the financial inclusion and energy poverty. This analysis reports a robust negative and significant association between financial inclusion and energy poverty, bringing potential critical notes for Indonesia's policy formulation against energy poverty.
KW - Energy poverty
KW - Financial inclusion
KW - Multidimensional energy poverty index
UR - http://www.scopus.com/inward/record.url?scp=85192630693&partnerID=8YFLogxK
U2 - 10.1016/j.wds.2023.100113
DO - 10.1016/j.wds.2023.100113
M3 - Article
AN - SCOPUS:85192630693
SN - 2772-655X
VL - 3
JO - World Development Sustainability
JF - World Development Sustainability
M1 - 100113
ER -