Politická ekonomie 2025, 73(4):715-742 | DOI: 10.18267/j.polek.1466
Policies Towards Energy Poverty Reduction Goal: Role of Female Political Participation and Financial Globalization
- Tomiwa Sunday Adebayo, Operational Research Center in Healthcare, Near East University, TRNC Mersin, Turkey; VIZJA University, Warsaw, Poland; Research Center of Development Economics, Azerbaijan; State University of Economics (UNEC), Baku, Azerbaijan
The United Nations Sustainable Development Goals (SDGs) emphasize the importance of energy by making affordable and clean fuel access the focus of Goal 7. Energy poverty is a widespread issue globally, particularly in developing countries. Thus, this investigation inspects the drivers of energy poverty in Brazil using data from 1997Q1 to 2022Q4. The study introduces the wavelet Zivot-Andrews (WZA) unit root test, which modifies the traditional Zivot-Andrews (ZA) test by incorporating wavelet analysis, allowing decomposition of the time series into different time scales (short-term, medium-term and long-term). This enables the WZA test to capture structural breaks and unit roots more effectively across various time scales. In addition, the study employs wavelet quantile-on-quantile regression. The results show that across all quantiles and time scales, an increase in financial globalization and economic policy uncertainty increases energy poverty. The study also shows that female political participation increases energy poverty in the short and long term. In contrast, in the medium term and across all quantiles, female political participation decreases energy poverty. Lastly, an increase in financial development decreases energy poverty across all quantiles and periods. Based on these findings, policies are suggested.
Keywords: Energy poverty, economic policy uncertainty, female political participation, financial globalization, financial development
JEL classification: C22, D72, F65, O13, Q48
Received: June 25, 2024; Revised: September 15, 2024; Accepted: September 30, 2024; Prepublished online: August 7, 2025; Published: August 27, 2025 Show citation
References
- Acheampong, A. O., Opoku, E. E. O., Amankwaa, A., et al. (2024). Energy poverty and gender equality in education: Unpacking the transmission channels. Technological Forecasting and Social Change, 202, 123274. https://doi.org/10.1016/j.techfore.2024.123274
Go to original source...
- Adebayo, T. S., Özkan, O. (2024). Investigating the influence of socioeconomic conditions, renewable energy and eco-innovation on environmental degradation in the United States: A wavelet quantile-based analysis. Journal of Cleaner Production, 434, 140321. https://doi.org/10.1016/j.jclepro.2023.140321
Go to original source...
- AlNemer, H. A., Hkiri, B., Tissaoui, K. (2023). Dynamic impact of renewable and non-renewable energy consumption on CO2 emission and economic growth in Saudi Arabia: Fresh evidence from wavelet coherence analysis. Renewable Energy, 209, 340-356. https://doi.org/10.1016/j.renene.2023.03.084
Go to original source...
- Anser, M. K., Nassani, A. A., Eweade, B. S., et al. (2024). Do women in politics and government efficiency enhance electricity access in Nigeria: Analyzing energy prices and foreign investment. International Journal of Sustainable Development & World Ecology, 31, 1-16. https://doi.org/10.1080/13504509.2024.2358295
Go to original source...
- Awan, A., Bilgili, F., Rahut, D. B. (2022). Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998-2019. Renewable and Sustainable Energy Reviews, 158, 112157. https://doi.org/10.1016/j.rser.2022.112157
Go to original source...
- Aydin, M., Pata, U. K. (2020). Are shocks to disaggregated renewable energy consumption permanent or temporary for the USA? Wavelet based unit root test with smooth structural shifts. Energy, 207, 118245. https://doi.org/10.1016/j.energy.2020.118245
Go to original source...
- Bilgili, F., Lorente, D. B., Kuşkaya, S., et al. (2021). The role of hydropower energy in the level of CO2 emissions: An application of continuous wavelet transform. Renewable Energy, 178, 283-294. https://doi.org/10.1016/j.renene.2021.06.015
Go to original source...
- Broock, W. A., Scheinkman, J. A., Dechert, W. D., et al. (1996). A test for independence based on the correlation dimension. Econometric Reviews, 15(3), 197-235. https://doi.org/10.1080/07474939608800353
Go to original source...
- Che, X., Jiang, M. (2021). Economic Policy Uncertainty, Financial Expenditure and Energy Poverty: Evidence Based on a Panel Threshold Model. Sustainability, 13(21), 11594. https://doi.org/10.3390/su132111594
Go to original source...
- Crentsil, A. O., Asuman, D., Fenny, A. P. (2019). Assessing the determinants and drivers of multidimensional energy poverty in Ghana. Energy Policy, 133, 110884. https://doi.org/10.1016/j.enpol.2019.110884
Go to original source...
- Dong, K., Taghizadeh-Hesary, F., Zhao, J. (2022). How inclusive financial development eradicates energy poverty in China? The role of technological innovation. Energy Economics, 109, 106007. https://doi.org/10.1016/j.eneco.2022.106007
Go to original source...
- Fan, Y., Gençay, R. (2010). UNIT ROOT TESTS WITH WAVELETS. Econometric Theory, 26(5), 1305-1331. https://doi.org/10.1017/S0266466609990594
Go to original source...
- Gafa, D. W., Egbendewe, A. Y. G. (2021). Energy poverty in rural West Africa and its determinants: Evidence from Senegal and Togo. Energy Policy, 156, 112476. https://doi.org/10.1016/j.enpol.2021.112476
Go to original source...
- Granger, C. W. J. (1966). The Typical Spectral Shape of an Economic Variable. Econometrica, 34(1), 150-161. https://doi.org/10.2307/1909859
Go to original source...
- Hassan, S. T., Batool, B., Zhu, B., et al. (2022). Environmental complexity of globalization, education, and income inequalities: New insights of energy poverty. Journal of Cleaner Production, 340, 130735. https://doi.org/10.1016/j.jclepro.2022.130735
Go to original source...
- Jahanger, A., Hossain, M. R., Awan, A., et al. (2024). Uplifting India from severe energy poverty accounting for strong asymmetries: Do inclusive financial development, digitization and human capital help reduce the asymmetry? Energy Economics, 134, 107568. https://doi.org/10.1016/j.eneco.2024.107568
Go to original source...
- Khan, Z., Haouas, I., Trinh, H. H., et al. (2023). Financial inclusion and energy poverty nexus in the era of globalization: Role of composite risk index and energy investment in emerging economies. Renewable Energy, 204, 382-399. https://doi.org/10.1016/j.renene.2022.12.122
Go to original source...
- KOF (2023). ETH Zurich KOF Globalisation Index. [Retrieved 2024-5-26] Available at: https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html
- Kumar, A. S., Padakandla, S. R. (2022). Testing the safe-haven properties of gold and bitcoin in the backdrop of COVID-19: A wavelet quantile correlation approach. Finance Research Letters, 47(B), 102707. https://doi.org/10.1016/j.frl.2022.102707
Go to original source...
- Magazzino, C., Forte, F., Giolli, L. (2022). On the Italian public accounts' sustainability: A wavelet approach. International Journal of Finance & Economics, 27(1), 943-952. https://doi.org/10.1002/ijfe.2184
Go to original source...
- Ngarava, S., Zhou, L., Ningi, T., et al. (2022). Gender and ethnic disparities in energy poverty: The case of South Africa. Energy Policy, 161, 112755. https://doi.org/10.1016/j.enpol.2021.112755
Go to original source...
- Nguyen, C. P., Su, T. D. (2021). Does energy poverty matter for gender inequality? Global evidence. Energy for Sustainable Development, 64, 35-45. https://doi.org/10.1016/j.esd.2021.07.003
Go to original source...
- Nguyen, C. P., Su, T. D., Bui, T. D., et al. (2021). Financial development and energy poverty: Global evidence. Environmental Science and Pollution Research, 28(26), 35188-35225. https://doi.org/10.1007/s11356-021-13038-x
Go to original source...
- Ogede, J. S., Oduola, M. O., Onanuga, A. T. (2023). Deciphering the moderation influence of economic policy uncertainty in the dynamics of energy poverty-government expenditure nexus in SSA. Energy Efficiency, 16(8), 86. https://doi.org/10.1007/s12053-023-10166-w
Go to original source...
- Ogwumike, F. O., Ozughalu, U. M. (2016). Analysis of energy poverty and its implications for sustainable development in Nigeria. Environment and Development Economics, 21(3), 273-290. https://doi.org/10.1017/S1355770X15000236
Go to original source...
- Ozkan, O., Eweade, B. S., Usman, O. (2024). Assessing the impact of resource efficiency, renewable energy R&D spending, and green technologies on environmental sustainability in Germany: Evidence from a Wavelet Quantile-on-Quantile Regression. Journal of Cleaner Production, 450, 141992. https://doi.org/10.1016/j.jclepro.2024.141992
Go to original source...
- Percival, D. B., Walden, A. T. (2000). Wavelet Methods for Time Series Analysis. Cambridge: Cambridge University Press. ISBN 978-0511841040.
Go to original source...
- PU (2024). Policy Uncertainty. [Retrieved 2024-5-24] Available at: https://www.policyuncertainty.com
- Sen, K. K., Karmaker, S. C., Hosan, S., et al. (2023). Energy poverty alleviation through financial inclusion: Role of gender in Bangladesh. Energy, 282, 128452. https://doi.org/10.1016/j.energy.2023.128452
Go to original source...
- Sim, N., Zhou, H. (2015). Oil prices, US stock return, and the dependence between their quantiles. Journal of Banking & Finance, 55, 1-8. https://doi.org/10.1016/j.jbankfin.2015.01.013
Go to original source...
- Sy, S. A., Mokaddem, L. (2022). Energy poverty in developing countries: A review of the concept and its measurements. Energy Research & Social Science, 89, 102562. https://doi.org/10.1016/j.erss.2022.102562
Go to original source...
- UN (2018). Advancing SDG 7 implementation in support of the 2030 agenda. New York: United Nations: The Department of Economic and Social Affairs. Available at: https://sustainabledevelopment.un.org/content/documents/17462PB1.pdf
- Wang, C., Pan, X., Wang, D., et al. (2024). Information communication technology, globalization, and energy poverty: Prospects for sustainable development in the N-11 countries. Sustainable Development, 32(6), 7156-7170. https://doi.org/10.1002/sd.3077
Go to original source...
- WDI (2024a). World Debelopment Indicator Brazil. [Retrieved 2024-5-28] Available at: https://data.worldbank.org/indicator/EG.USE.PCAP.KG.OE?locations=BR
- WDI (2024b). World Development Indicator. [Retrieved 2024-5-27] Available at: https://data.worldbank.org
- WDI (2024c). World Development Indicator Brazil. [Retrieved 2024-5-23] Available at: https://data.worldbank.org/country/brazil
- WDI (2024d). World Development Indicator Brazil. Economic Growth. [Retrieved 2024-5-23] Available at: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?locations=BR
- WB (2018). Tracking SDG 7: The Energy Progress Report. Washington, D.C.: World Bank.
- Zhang, Z., Hao, L., Linghu, Y., et al. (2023). Research on the energy poverty reduction effects of green finance in the context of economic policy uncertainty. Journal of Cleaner Production, 410, 137287. https://doi.org/10.1016/j.jclepro.2023.137287
Go to original source...
- Zivot, E., Andrews, D. W. K. (1992). Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis. Journal of Business & Economic Statistics, 20(1), 25-44. https://doi.org/10.1198/073500102753410372
Go to original source...
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.