Unlocking the power of solar photovoltaics and ICT trade on income inequality across developed and developing economic spectrum

Abstract

Solar photovoltaic energy can improve poverty circumstances, enhance income levels, and alleviate gaps in income distribution. Thus, this study seeks to demonstrate the compound relationship between solar photovoltaic systems and income inequality from (2000 to 2022). It also examines how Information and Communication Technology-Trade, financial development, and education affect income disparity. The Panel Method of Moments Quantile Regression and the Dumitrescu-Hurlin Ganger causality technique are used to examine these variables' long-term correlations. This study shows that solar photovoltaic energy can lift people from poverty, increase income, and reduce income gaps in emerging and developed nations. The moderation impact of solar photovoltaics in conjunction with economic growth uncovers a potentially advantageous synergistic outcome that could ultimately mitigate income inequality in both developed and developing nations. The study found an inverted U-shaped Kuznets Inequality Curve pattern in developing countries, suggesting that initial economic expansion may worsen income disparity before improving it. Developed economies have a U-shaped Kuznets Inequality Curve pattern, indicating that economic expansion initially reduces inequality but, after that, increases income inequalities. ICT trade appears to worsen income inequality, according to the study. Additionally, education is crucial to reducing income inequality. These findings help us comprehend the complex dynamics of solar photovoltaic energy, ICT trade, and wealth inequality in developed and developing nations.