The Effects of Education and Financial Development on Energy Poverty Reduction in Latin America

Using data from 14 Latin American countries over the period 2000–2019, this study examines the influence of education and financial development on energy poverty reduction. Evidence from different estimation approaches, such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and canonical correlation regression (CCR), showed that education substantially decreases energy poverty reduction in Latin America. The results also indicated that the nexus between financial development and energy poverty reduction is positively and significantly associated. Conversely, the linkage between education, financial development, and energy poverty reduction considerably varies among Latin American countries. We suggest that policies stimulating financial development and education will be pivotal in addressing energy poverty reduction in Latin America.