Analyzing the regional inequality of renewable energy consumption and its driving factors: Evidence from China

Abstract

To achieve the goal of “carbon peaking and carbon neutrality”, China is vigorously developing renewable energy. This paper aims to examine the major contributors to regional inequality in renewable energy consumption by analyzing the 30 provinces in China. We have analyzed the inequality of China's renewable energy consumption with Dagum Gini coefficient, and then use the Generalized Divisia Index Model (GDIM) to decompose the influencing factors contributing to the inequality of renewable energy consumption. The main conclusions are summarized as follows: First, renewable energy consumption was higher in the western region than in the central and eastern regions, and the regional inequality in renewable energy consumption have increased over time. Second, the study reveals that inter-group disparity is the primary source of regional inequality in renewable energy consumption in China. Third, at the national level, the results of the GDIM decomposition show that economic development continues to rely on fossil energy consumption, which negatively impacts the low-carbon transition of energy. Given China's complex geographical conditions, it is crucial for different provinces to develop their own strategies for renewable energy development, taking into account unique resources and challenges.