The Moderating Role of Per Capita Income in Energy Consumption-Poverty Nexus: Empirical Evidence from Pakistan

Abstract

The moderating role of per capita income pertaining to poverty and energy consumption is a missing link in the literature. To this end, this study aims to explore the energy-poverty nexus in Pakistan, incorporating per capita income as a moderator. Based on the time series nature of the data, we utilize the autoregressive distributed lag (ARDL) technique for the period 1984–2018. We design two separate models, that is, poverty model-A (the primary effect model) and poverty model-B (the interaction effect model). Our findings validate the significant prevalence of the influence of per capita income, as a moderator, on the relationship between energy consumption and poverty in Pakistan. Interestingly, the nature of moderation was observed to be enhancing both in the short and in the long-run. This study provides important policy implications for mitigating poverty in Pakistan. Our empirical findings educate policy makers and academicians to consider moderating behavior of per capita income for robust energy-poverty policy making in Pakistan.

Investigation into the dynamic relationships between global economic uncertainty and price volatilities of commodities, raw materials, and energy

“…In addition to commodity prices, this study investigates industrial material prices and energy prices. Changes in the price of energy affect the input costs for most goods (Saddique et al , 2022), which can lead to inflation and a variety of alterations in the decisions made by economic agents. Furthermore, global market uncertainty may be prevalent in manufacturing sectors.…”