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

Avik Ghosh^*

• Kanpur Regional Office, Reserve Bank of India, Mumbai, India

Energy poverty remains a pressing challenge in emerging economies, particularly in BRICS countries, where disparities in clean fuel and electricity access persist across rural and urban populations. Using data from 1991 to 2023, this study investigates the structural determinants of energy poverty-energy availability, efficiency, renewable energy composition, and financial capacity-focusing on their distributional effects across deciles of clean fuel access. Employing fixed-effects, instrumental variable, and quantile regression techniques, the analysis uncovers significant rural-urban disparities and heterogeneities in key determinants. Results show that energy imports positively influence urban clean fuel access but are constrained in rural areas due to infrastructure limitations. Similarly, renewable energy consumption and efficiency improvements benefit urban populations, particularly at higher deciles, but have limited impact on underserved rural communities. Financial capacity remains a critical determinant across all contexts, with rural areas demonstrating stronger income sensitivity. These findings highlight the need for tailored policy interventions, including decentralized renewable energy systems, income-enhancing measures, and rural infrastructure investments, to bridge the rural-urban divide. By integrating quantile-specific insights and addressing structural disparities, this research contributes to the literature on energy equity and provides actionable recommendations to achieve universal and sustainable energy access, aligning with Sustainable Development Goal 7.