Large inequality in international and intranational energy footprints between income groups and across consumption categories

Abstract

Inequality in energy consumption, both direct and indirect, affects the distribution of benefits that result from energy use. Detailed measures of this inequality are required to ensure an equitable and just energy transition. Here we calculate final energy footprints; that is, the energy embodied in goods and services across income classes in 86 countries, both highly industrialized and developing. We analyse the energy intensity of goods and services used by different income groups, as well as their income elasticity of demand. We find that inequality in the distribution of energy footprints varies across different goods and services. Energy-intensive goods tend to be more elastic, leading to higher energy footprints of high-income individuals. Our results consequently expose large inequality in international energy footprints: the consumption share of the bottom half of the population is less than 20% of final energy footprints, which in turn is less than what the top 5% consume. Detailed measures of energy use inequality globally and within countries are essential to ensure a just energy transition. Estimating embedded energy in goods and services used by different income groups, Oswald et al. measure the large inequality in energy use in 86 countries, and internationally.