Does peak technology combat energy poverty in developing countries?

Abstract

Purpose – The purpose of this study is to highlight the importance of advanced technologies in combating energy poverty. Design/methodology/approach – The study focuses on a group of 99 developing countries spanning from 2000–2021. It applies different estimation methods such as OLS with fixed effects, Driscoll-Kraay with fixed effects and generalized least squares (GLS). Findings – The main conclusion is that advanced technologies significantly reduce energy poverty in developing countries. Similarly, this effect remains robust by changing the estimation technique, including the generalized method of moments and Tobit models. Furthermore, the impact of advanced technologies on all alternative measures of energy poverty remains robust to the main result. By adding natural resources to the model, it is apparent that natural resources have an inverse impact on energy poverty. By taking into account the heterogeneity of income level, the effect is more important in low-income developing countries, followed by lower middle-income and higher middle-income countries. In high-income countries, there is an inverse impact of technological readiness on the consumption of energy. Policy suggestions are provided. Originality/value – The paper complements the existing literature by examining how peak technology influences energy poverty in developing countries.