Study on the impact of energy poverty on income inequality at different stages of economic development: Evidence from 77 countries around the world

Abstract

To achieve the Sustainable Development Goals (SDGs), countries should prioritize reducing income inequality while ensuring people have access to affordable, reliable, and modern energy. This study clearly illustrates the nexus between three aspects of energy poverty and income inequality, focusing on 77 countries from 2000 to 2019. The empirical results indicate that access to electricity contributes to reduce income inequality, while access to clean fuels and renewable energy development can increase income inequality. The results of heterogeneity analysis further reveal that at the early stage of economic development, access to clean fuels and electricity can significantly reduce income. In contrast, the development of renewable energy worsens income inequality. However, renewable energy development becomes the primary factor in reducing income inequality as economic development progresses. Furthermore, the mechanism analysis shows that energy poverty can reduce income inequality by improving public health and educational attainment. Finally, this study provides valuable policy recommendations and scientific arguments for reducing income inequality, accelerating energy access, and achieving the SDGs.