Renewable Energy Investments and Social Equity: Evaluating the Low-Carbon Energy Transition

Abstract

This research examines the societal impacts of varying energy policy approaches and the progress of the energy transition toward a low carbon energy-based regime internationally. Using indicators relevant to energy policy and the energy transition, five critical social equity impacts of environmental improvement, health, employment, participation, and energy cost are investigated from the viewpoint of an ‘equitable’ energy transition. We investigate the correlation of quantitative social equity impacts of the shift toward new renewable energy-based electricity from 1990 to 2015, for 99 nations with differing development levels, energy resources and policies. We find that increased levels of new renewable energy deployment generally accompany social equity improvement, however geography, national income level and complementary energy policies are also important. Our results highlight specific issues for developing nations, whereby electricity needs are often met by fossil fuels prior to the large-scale penetration of renewables. These nations enjoy short-term social equity benefits, at the risk of long-term negative social equity outcomes. This study’s holistic evaluation of energy transitions and social equity outcomes enables proactive policy development which contributes to the realization of a more equitable energy transition.