A Study on Peer Effects in Energy Poverty Among Rural Households in China

This study examines whether and how peer effects influence energy poverty among rural households in China. Guided by established theoretical frameworks, this study employs the data from the Chinese Family Panel Studies (CFPS) to analyze the impact of peer effects on household energy poverty. The findings reveal that household energy poverty is significantly affected by the energy poverty status of other households within the same village, demonstrating the existence of substantial peer effects. Moreover, peer effects have a stronger impact on energy poverty among low-income and elderly households. Mechanism analysis indicates that information transmission and social norms are important mechanisms through which peer effects influence household energy poverty. Consequently, for developing countries like China, it is advisable to emphasize the importance of peer effects in rural household energy choices, consider the sensitivity of different demographic groups to these effects, and enhance the effectiveness of information transmission and social norms mechanisms. Our research provides micro-level theoretical support and practical evidence to developing countries in shaping policies aimed at mitigating energy poverty.