A step towards a just transition in the EU: Conclusions of a regression-based energy inequality decomposition

Abstract

The conceptual and regulatory framework of the European just transition does not consider inequality in household energy consumption. This study addresses the causes of this inequality across the 27 Member States of the European Union (EU) in the period 2010–2020 to contribute to its reduction. To identify these causes, the regression-based inequality decomposition approach is used. The results show that the variation in per capita gross domestic product (GDP), which contributes 38.76% to the inequality of household energy consumption, is the main cause of this inequality. Moreover, the average contribution of GDP per capita in the inequality of household energy consumption is almost negligible in the most developed states. In contrast, it is much higher in the least developed states, suggesting that decoupling between household energy consumption and economic development has not been achieved in all Member States. To promote a just transition to climate neutrality by 2050, the energy transition framework should therefore be broadened to help the least developed states achieve decoupling and align their energy consumption with that of the most developed states.