Energy Poverty Convergence in a Fragmented World: Multidimensional Evidence from Non-OECD Countries

The aim of this paper is to provide new evidence on the convergence process of energy poverty across countries when it is conceptualized as a multidimensional phenomenon rather than as a single composite index. We consider three policy-relevant dimensions of energy poverty: (i) accessibility to modern energy services, proxied by access to electricity in urban areas; (ii) availability of clean and modern energy, proxied by access to clean fuels and technologies for cooking; and (iii) energy affordability, proxied by energy use per capita. Using a worldwide panel of 141 countries of the Global South, we analyze both univariate and multivariate sigma convergence over time. Multivariate convergence is assessed through the evolution of the determinant of the cross-country covariance matrix of the three dimensions, capturing their joint dispersion and interdependence. The main contributions of the paper are as follows. First, it avoids the construction of an arbitrary aggregate energy poverty index, which necessarily relies on subjective weighting schemes. Second, it provides new evidence of convergence in energy poverty considering its multidimensional nature. Third, it shows the analysis for largest data set available for 141 NON-OECD countries. The results underscore a reduction in global dispersion across all three dimensions jointly, suggesting that countries are converging toward lower and more homogeneous levels of energy poverty. The conditional convergence analysis shows the significant influence of renewable energy, urban concentration and economic growth on the convergence paths. These results have relevant implications for energy policies, suggesting targeting different interventions to alleviate energy deprivation.