Decoding Energy Poverty: Rural–Urban Disparities and Structural Barriers in BRICS Countries

Decoding Energy Poverty: Rural–Urban Disparities and Structural Barriers in BRICS Countries
Author: Avik Ghosh
Journal: Frontiers in Environmental Economics
Section: Energy Economics
Volume: Volume 4 (2025)
 

This article examines the structural determinants of energy poverty in BRICS countries, focusing on persistent disparities in access to clean fuels and modern energy technologies between rural and urban populations. Using panel data from 1991 to 2023, the study measures energy poverty through clean fuel access and employs three econometric approaches—two-way fixed-effects, instrumental variable methods and quantile regression—to capture both causal relationships and distributional effects across different access levels.

The findings reveal clear rural-urban divergences. Energy imports significantly improve clean fuel access in urban areas, where distribution networks are stronger, but show limited impact in rural regions facing infrastructure gaps. Financial capacity proves to be the most influential determinant in rural contexts, remaining significant across all quantiles of clean fuel access. Energy efficiency gains, measured as GDP per unit of energy use, predominantly benefit urban populations, especially those already at higher access levels. Quantile regression results show that energy availability increases in importance at upper access deciles, while affordability maintains a consistent role across the spectrum.

The article concludes that expanding energy availability alone cannot close rural access gaps without complementary measures to address affordability and last-mile distribution barriers. It calls for context-specific strategies combining decentralized renewable systems, targeted income support, clean-cooking solutions and urban efficiency regulations. Such integrated policies are essential for accelerating equitable progress toward Sustainable Development Goal 7 within BRICS countries.