Consumption Inequality Research Articles

Energy consumption inequality in China: What can an agent-based model tell us?

China is a major energy consumer, however, related empirical research on China's unequal energy consumption is very limited. Therefore, according to the data from 30 provinces and cities, this study aims to establish a simulation model to analyse the Gini coefficient (the Lorenz curve) of China's energy consumption, and identify the main factors affecting the Gini coefficient through dynamic scenario analysis. During the simulation cycle (from 2022 to 2081), the average Gini coefficient of energy consumption fluctuates between 0.30 and 0.41, which indicates the inequality is slightly high. But the maximum value fluctuation ranges from 0.40 to 0.50, which indicates the inequality is high. The author also found that three factors—technological level, government subsidies, and growth rate of energy supply—can significantly affect the Gini coefficient of energy consumption. It is necessary to promote the technological level, increase subsidies for energy production, and promote the growth of total energy supply to significantly reduce inequity in energy consumption.

Consumption Pattern and Elasticities of Demand of Major Food Items among Farm Households in Andhra Pradesh

We examined food consumption pattern of farm households in Andhra Pradesh. Income and price elasticities were also estimated for major food items using AIDS model. The Primary data were collected from 240 farm households spread over in different regions of Andhra Pradesh. The results revealed that monthly food expenditure for all the income groups was Rs.7450. The per centage of food expenditure was high for meat followed by pulses, cereals, vegetables, oil and fruits for all the income groups. The income elasticities of demand for major food items revealed that cereals had low elasticities for all the income groups when compared to elasticities of livestock and horticulture products such as milk, meat, fruits, vegetables etc. Crop diversification and milch animals rearing should be strengthened for regular income to the farm households which will reduce the food expenditure inequalities among farm households.

Inequality of household water footprint consumption in China

In addition to China’s physical water shortage, income and expenditure disparities can exacerbate the country’s water issues, thus preventing an equitable distribution of water resources across diverse household groups. By linking Chinese data on household expenditure with an environmentally extended multiregional input–output (MRIO) table, this study calculates household water footprints (WFs) for 12 income groups in 30 provinces across China and assesses the water inequality among households in 2012. In addition to inequality across regions, importantly, water inequality across different income groups is identified. The findings show that (1) the inequality in WFs between households within and across provinces in China is large. Within provinces, the WF of urban residents is 2.5 times as large as that of rural residents. Across provinces, Xinjiang has the highest per capita WF (1126.17 m3), while Shandong has the lowest (155.97 m3). (2) Differences in household WFs vary widely by income group. The gap in the per capita WF between very low-income urban households and very high-income households ranges between 163.3 m3 (Tianjin) and 1646.4 m3 (Xinjiang), while the gap among rural households ranges only from 37.0 m3 (Beijing) to 519.8 m3 (Xinjiang). (3) Water inequality declines with regional economic development. In 2012, the province-level total WF-Gini coefficients ranged from 0.20 (Beijing) to 0.36 (Guizhou). The water inequality in China’s wealthier eastern region is much narrower than that in the poorer provinces in western China. Governments need to pay more attention to household water inequality when considering the allocation of water and water-saving duties.

Election Campaigns, News Consumption Gaps, and Social Media: Equalizing Political News Use When It Matters?

We investigate how inequalities in political media use develop throughout election campaigns, and in particular whether social media use helps counterbalance traditional news consumption gaps. Using a four-wave individual-level panel survey of the Norwegian 2017 national election campaign, we run a series of latent growth models to investigate whether differences in news consumption based on gender, age, education, and political interest increase or decrease during campaigns. We find that news consumption gaps are either stable or converge throughout the campaign. Importantly, social media provides political information to those groups that use traditional media channels the least and thereby reduce overall gaps in political media consumption. In this way, election campaigns, to some extent, equalize inequalities in political news consumption when it matters the most.

Between insufficiency and efficiency: Unraveling households' electricity usage characteristics of urban and rural Indonesia

Indonesia has committed to achieving Sustainable Development Goal 7, namely to ensure access to affordable, reliable, sustainable, and modern energy for all. The Indonesian government improves electricity access through various programs, from the fast-track program for coal-fired power plants to the electricity subsidy for low-income households. In contrast, energy efficiency has been a crucial problem, given that most power plants work with coal. This study raised the electricity usage issue between insufficiency and efficiency by investigating factors associated with electricity consumption inequality using quantile regression in urban and rural areas. It revealed that most Indonesian households still encountered energy insufficiency. Households vulnerable to falling into the energy poverty category were low-income households characterized by: female-headed households in urban areas, non-educated household heads, renters in urban areas, elderlies, and self-employed in rural areas. On the other hand, energy efficiency may target high-usage households characterized by: urban self-employed, university-level education, and houses 2200 VA power outlet or more. However, only 1 % of households were electricity productive users. Therefore, the government should provide affirmative action by promoting access to affordable energy for energy-poor households while considering sustainable energy for future generations. This condition will mean clean and sustainable energy development must be embedded in the country's energy plan to increase the electrification ratio and consumption.

Inequality in Private Health Care Expenditures: A 36-Year Trend Study of Iranian Households.

ObjectivesThroughout history, societies have been impacted by inequality. Many studies have been conducted on the topic more broadly, but only a few have investigated inequalities in out-of-pocket health payments (OHP). This study measures OHP inequality trends among the Iranian households.MethodsThis study used data from the Iranian Statistics Center on Iranian household income and expenditures. The analysis included a total of 995 300 households during the 36 years from 1984 to 2019. The Gini coefficient, Atkinson index, and Theil index were calculated for Iranian OHP.ResultsAverage Iranian household OHP increased from 33 US dollar (USD) in 1984 to 47 USD in 2019. During this 36-year span, the average±standard deviation Gini coefficient for OHP was 0.73±0.04, and the Atkinson and Theil indexes were 0.68±0.05 and 1.14±0.29, respectively. The Gini coefficients for the subcategories of OHP of outpatient diagnostic services, medical assistant accessories, hospital inpatient services, and addiction cessation were 0.70, 0.61, 0.84, and 0.64, respectively.ConclusionsIn this study, we scrutinized trends of inequality in the OHP of Iranian households. Inequality in OHP decreased slightly over the past four decades. An analysis of trends among different subgroups revealed that affluent households, such as households with insurance coverage and households in higher income deciles, experienced higher inequality. Therefore, lower inequality in health care expenditures may be related to restricted access to health care services in Iran.

Dünyada Enerji Yoksulluğuna Odaklanmak: Sorunlar ve Politikalar

The aim of this study is to examine the energy poverty in the world and to produce a policy for this problem. In this study, descriptive analysis method was used. In the study, the conceptual framework of energy poverty was drawn and the methods of measuring energy poverty and the causes of energy poverty were discussed. Using the findings consisting of statistical data, energy poverty in the world has been illustrated and policies that can provide a solution to this problem have been proposed. In the study, it has been observed that the energy need has increased all over the world, but there are serious inequalities in energy consumption on the basis of regions and countries. In addition, the lack of access to clean energy sources increases health problems along with poverty and leads to global pollution. It is necessary to urgently implement policy measures that take into account the specific situation of households and are shaped according to the dynamics of the countries themselves. Accordingly, household incomes should be increased, decent jobs should be provided and welfare policies should be put in place quickly to ensure that current poverty is not maintained.

Beyond Consumption Expenditure: Income Inequality and Its Sources in India

A considerable body of research on inequality in India has focused on consumption inequality. This article compares inequality in consumption expenditure and income, using two waves of the India Human Development Survey. We find that while income inequality increased marginally, expenditure inequality remained stable. The article also undertakes the decomposition of income inequality by sources and finds that wage and agricultural incomes contribute most to inequality in rural areas whereas wage and business incomes are the major contributors in urban areas. Wages and government transfers arse found to be inequality-decreasing sources of income, and agricultural income is found to be inequality-increasing. While government transfers benefit low-income households, there is potential for increasing their efficacy and for attaining a more egalitarian distribution of income by better targeting. Further, we examine how expenditure and income are associated with the ownership of household assets. Our findings suggest that low consumption is a better indicator of material well-being than low income.

China's carbon inequality of households: Perspectives of the aging society and urban-rural gaps

To take the carbon reduction responsibility into consumption activities and reveal the discrepancy of carbon footprint (CF) among different types of households, this study investigates CF and inequality of household consumption in 25 provinces in China by calculating combing eight categories covering both direct and indirect household carbon emissions. Importantly, the aging society and urban-rural gaps are considered. The findings indicate that per capita CF varies appreciably among the different household groups, and the aged tend to generate less emission. However, the CF of a young person may not decrease as he/she ages owing to completely diverse expenditure preferences from current older people. We revealed that people living in urban regions have larger CF than those in rural regions, and the urban–rural gap promotes inequality in household CF. Furthermore, there is a correlation between the aging of population and urban-rural gaps. The young people migrate from villages to cities, leaving the elderly and children at villages. Therefore, the aging of population in rural regions is worse than that in cities, which raises the carbon inequality among households.

How would 401(k) ‘Rothification’ alter saving, retirement security, and inequality?

AbstractMany nations incentivize retirement saving by letting workers defer taxes on pension contributions, imposing them when retirees withdraw their funds. Using a dynamic life-cycle model, we show how ‘Rothification’ – that is, taxing 401(k) contributions rather than payouts – alters saving, investment, consumption, and Social Security claiming patterns. We find that taxing pension contributions instead of withdrawals leads to delayed retirement, somewhat lower lifetime tax payments, and relatively small reductions in consumption. Indeed, the two tax regimes generate quite similar relative inequality metrics: the relative consumption inequality ratio under taxed-exempt-exempt (TEE) is only 4% higher than that in the exempt-exempt-taxed (EET) case. Moreover, results indicate that the Gini measures are also strikingly similar under the EET and the TEE regimes for lifetime consumption, cash on hand, and 401(k) assets, differing by only 1–4%. While tax payments are higher early in life under the TEE regime, they are slightly lower in the long run. Moreover, higher EET tax payments are also accompanied by higher volatility. We therefore find few reasons for policymakers to favor either tax approach on egalitarian or revenue-enhancing grounds.

Inequalities in Regional Level Domestic CO2 Emissions and Energy Use: A Case Study of Iran

An increasing amount of CO2 emissions from the household sector of Iran led us to analyze the inequality and understand the possible driving force behind the CO2 emissions. The study of inequality provides information to policy-makers to point policies in the right direction. By considering the differences in the socio-economic factors of provinces, the study aims to analyze the inequality in CO2 emissions and different kinds of energy consumption, including oil, gas and electricity, for the household sector of Iran’s provinces between 2000 and 2017. For this aim, the Theil index and Kaya factor, as a simple and common method, were considered to evaluate the inequality in both CO2 emissions and energy consumption, and determine the driving factor behind CO2 emissions. According to the results, inequality in oil and natural gas consumption were increasing, electricity was almost constant; however, CO2 emissions experienced a decreasing trend for the study period. The Theil index changed from 0.4 to 0.65 for oil, from 0.18 to 0.22 for natural gas, from 0.17 to 0.15 for electricity, and from 0.2 to 0.14 for CO2 emissions between 2001 and 2017. In addition, the results of the inequality study indicated that most of the inequalities belong to within-group inequalities in energy consumption and CO2 emissions. The results of the Kaya factor indicate that the second factor, energy efficiency, with a 0.21 value was the main driving factor of inequalities in CO2 emissions; however, the first factor, energy consumption, can be a potential factor for inequality in the following years, as it increased from 0.00 to 0.11 between 2001 and 2017. It seems that by removing the energy subsidy policy in 2010 and 2013, low-standard and energy-wasting old vehicles were the most effective factors of energy inefficiency in the household sector, which need more accurate policy-making.

Consumption inequality and poverty in Greece: Evidence and lessons from a decade-long crisis

The paper assesses evolutions in consumption inequality and poverty in Greece from the onset of the economic crisis in 2009 until the completion of the last structural adjustment programme in 2019, being the first to analyse distributional developments under the SYRIZA-led government as contrasted to the period that led to its electoral rise. Using microsimulation analysis on several waves of Household Budget Survey data, this study finds that the left-led government elected in 2015 reversed trends of steeply escalating inequality and poverty of the 2009–2014 period. By adopting policies with clearly Rawlsian characteristics, primarily the least well-off and partly the middle class gained some lost ground. However, distributional changes were mostly marginal, when compared to the massive adverse developments of the 2009–2014 period. At the same time, the disequalising effect of indirect taxation became stronger as further tax hikes were employed to achieve fiscal consolidation targets. Our results suggest that even well-targeted redistributive policies, unless sufficiently generous, have limited capacity to actually lift people out of poverty and multilevel policies affecting the distribution of market incomes are necessary. If the NextGenerationEU recovery plan is set to achieve inclusive growth, this an important lesson for policy makers.

Do economic inequalities impact demographic dividend: Evidence from India

The paper offers a new explanation and prediction of empirical relationship between income and consumption inequalities and demographic dividend. The framework for the analysis is a modified National Transfer Accounts (NTA)-based modelling of the first demographic dividend with inequality-adjusted or inequality-discounted economic support ratio (ESR). The model is tested for India by calculating the inequality-adjusted demographic dividend (or the growth rate of ESR) for the period 2005-2050. The results show that income inequality is not higher than consumption one for all ages and these age-specific economic inequalities have remarkable effects on (i) lowering the observed age-specific distribution of labour income for select ages and consumption for all ages and (ii) reducing the size and duration of demographic dividend due to lower growth rate of ESR. In addition, income inequality effects are found to be stronger than consumption inequality effects in terms of reducing the size of demographic dividend. These results imply that (a) growth effects of the first demographic dividend are upward-biased if unadjusted for the economic inequalities; (b) attainment of goals and targets of the reduction in inequalities under UN-SDGs 2030 by redistributive economic policies are contributory to the maximization of economic growth through the first demographic dividend; and (c) economic inequalities do impact the size and duration of demographic dividend. Subject to the availability of data, the modified approach to the first demographic dividend calculation in this paper is of relevance for comparative studies between India and other countries to draw lessons from mutual experiences and to establish the generality of results.

Inequality in Food Consumption and Diet Diversity: Evidence from Turkey

Hunger is one of the devastating problems in the world. More than eight hundred million people are undernourished. However, hunger is one part of the food security problem. In addition to the undernourished people, two billion people have also health problems due to overweight, and obesity. Therefore, the topic of food security needs to be discussed in the context of consumption distribution. This paper estimates food consumption inequality in Turkey. Using more than 150 thousand households’ monthly expenditures, it shows how food inequality changes throughout 2003-2017. In addition to food consumption inequality, we estimate diet diversity inequality and show the impact of income on it. Our study finds that food consumption inequality increased after the food crisis of 2007. Food consumption inequality is mostly intensified in rural areas. We do not find any differentiated effects of income, education, and employment. Rich households have a more diversified diet than poor households. However, diet diversity increased for all households, especially in the last five years. Income has a negative impact on diet diversity in rich households, positive impact in poor households. Therefore, income decreases diet diversity inequality. Our results show the importance of food distribution in the discussion of food security policies.

The Formation of the Criteria, Rules and Regulations of the Sufficient and High-Quality Food According to the European Standards

Abstract. Introduction. Modern food systems face the challenge of supporting food choices that are consistent with a healthy and adequate diet. The vast majority of consumers of food products do not choose the principle of quality � the choice is made in favor of lower cost (low nutrient content), readiness of the product for consumption (high processing and trans fat content) or taste (high sugar, salt, etc.). At the same time, poor nutrition around the world is the number one risk factor for death and disability. Purpose. To study the criteria of the sufficient and high-quality food based on the norms and standards according to the European standards at different levels. Results. The article examines the indicators of calorie consumption per capita, daily calorie reserve per person, the minimum daily calorie requirement, inequality in calorie consumption per capita in the world. The key drivers of the impact of the level of nutrition on the quality of life have been identified: a healthy diet; unhealthy diet and lack of physical activity are the main global health risks, especially obesity; breastfeeding; balanced energy consumption; restriction of sugar consumption (up to 10%) and salt (up to 5 g per day). The WHO data and recommendations on ensuring a healthy diet for adults and children are summarized. The effective actions of politicians to create a healthy food environment have been identified, which should include three interrelated areas: building coherence in national policies and investment plans, including trade, food and agricultural policies; encouraging consumer demand for healthy food; promoting appropriate feeding practices for infants and young children; and tools for their implementation at the national level were systematized. WHO�s healthy eating policies and programs for national governments and related healthy eating policies and programs in Ukraine were described. Conclusions. A healthy diet from birth and throughout life prevents malnutrition in all its forms, as well as a number of non-communicable diseases. However, increased production and consumption of processed foods, rapid urbanization and lifestyle changes have led to changes in diets. People now consume significantly more foods high in energy, fat, sugar and salt / sodium. At the same time many people do not consume enough fruits, vegetables and whole grains, which contain the necessary fiber, vitamins and minerals for the human body. The required content of a varied, balanced and healthy diet varies depending on individual characteristics (age, gender, lifestyle and level of physical activity), cultural context, local products and eating habits. Along with this the basic principles of healthy nutrition remain unchanged.

How household consumption has changed after an economic crisis

PurposeThis work analyzes the economic impact of an economic crisis on consumption in Spanish households, detecting inequalities in household consumption according to the age of the main breadwinner and changes in consumption patterns. In particular, the effects of the financial crisis of 2008 on household consumption are studied and divided according to the main breadwinner's age group to obtain the economic impact of the fall in consumption in young households.Design/methodology/approachThe input–output tables of the Spanish economy during the years 2005 and 2015 and data on household consumption based on age group have been used. Economic impact is estimated through multisector modeling, specifically a demand model expressed in monetary terms. This model allows us to obtain the direct impact on the sectors offering the demanded services and the indirect impact due to increase in intermediate demand from these sectors on the rest of them.FindingsThe results obtained show the changes in household consumption and its effects on different productive sectors, highlighting the following sectors: real estate activities, electricity, gas, steam and air conditioning supply, accommodation and food service activities and manufacturing.Originality/valueThis study measures the impact of an economic crisis on the consumption of young households, analyzing all groups of households according to the main breadwinner's age, with the added value of studying the impact of this variation on household consumption and quantifying the positive and negative impact on the different sectors of activity of the Spanish economy.

Behavioural utilitarianism and distributive justice

What are the distributive implications of utilitarianism? Is it compatible with a concern for equality, as many utilitarians have argued? We analyse these questions in the context of a pure allocation problem. We consider an infinitely-lived economy and, drawing on the behavioural literature, assume that individuals have reference-dependent preferences: agents’ utility is a function of current consumption and a reference point which captures consumption habits, or the agents’ upbringing. Assuming a history of inequalities in consumption, we show that the utilitarian allocation is equalising: starting from an unequal distribution, inequalities decrease over time at the utilitarian optimum. However, even though agents are in a relevant sense identical, equality does not obtain at any finite time.

Exploring dynamics in catastrophic health care expenditure in Nigeria

BackgroundThe Nigeria’s National Health Insurance Scheme aimed at making health care accessible and affordable since it’s became operational in 2005. However, many Nigerians still pay out of pocket for medical expenses, and this drive them to incurring catastrophic health expenditures. Although monitoring progress towards UHC is crucial, one single study exploring the dynamics in catastrophic health expenditure proportion, associated factors, inequality concentration, inequality size, together with decomposition using a longer period Nigeria panel household survey datasets is very scarce.MethodsData was drawn from three rounds of the Nigeria General Household Survey. The fixed percentage and rank-dependent thresholds were used to calculate and compare the proportion of households that incur catastrophic health expenditures. The logistic regression model was employed in analyzing the factors associated with catastrophic health expenditures. The concentration of catastrophic health expenditures inequality was assessed using the concentration curve, whereas the inequality size was determined using the concentration index. The decomposition method was used to decompose the concentration index into determining components.ResultsRelative to the fixed threshold value, the rank-dependent threshold revealed a higher share of households facing catastrophic health expenditures i.e., from 27% in 2010/2011 to 48% in 2015/2016. The two thresholds reveal similar trend, but differ in percentage points. The key factors associated with catastrophic health expenditures were economic status and geopolitical zone. Inequality in catastrophic health expenditures was found to be concentrated among the poor. The household economic status was uncovered as the major positive contributor to catastrophic health expenditures inequality across the sample periods.ConclusionThe findings of the study imply that narrowing economic status gap across households, and increasing the depth of insurance are crucial mechanisms to reduce the probability of incurring catastrophic health expenditures among the poor in Nigeria.

Food Poverty, Vulnerability, and Food Consumption Inequality Among Smallholder Households in Ghana: A Gender-Based Perspective.

We examined gender-based household welfare differences in Ghana among smallholder households. We measured disparities in welfare outcomes (food poverty, vulnerability, and food consumption inequality) across male and female household heads and identified the set of covariates influencing them. The study utilizes a dataset from a farm household survey undertaken in Northern Ghana from October to December 2018. A multistage sampling approach was adopted in selecting 900 farm households. The Oaxaca–Blinder mean and Recentered Inference Function decomposition techniques highlighted the sources of gender differentials in household welfare outcomes. The findings indicate a significant gap in food consumption expenditure per capita and household dietary diversity scores between male- and female- headed households, and these gaps are as high as 28.2% and 18.1%, respectively. However, there are no statistically significant differences in vulnerability to food poverty between male- and female-headed households. The Lorenz curves confirm inequality in gendered households’ food consumption expenditure and dietary diversity scores. This study highlights the existence of systemic female-headed household vulnerability to food poverty in Ghana. This study provides significant evidence of the need for policymakers to address food systems’ structural deficiencies and inequalities with gender in mind.

The inequality of electricity consumption in Colombia. Projections and implications

The inequality in electricity consumption (EC) in Colombia is assessed based on the per capita electricity consumption (ECpc) and the Gini coefficient. The ECpc was defined with the total electricity consumption and population for each department and rural and urban areas. Furthermore, the national ECpc was assessed according to the Colombian socioeconomic stratum defined by income levels. The results showed significant asymmetries in the ECpc between departments, urban and rural populations, and socioeconomic strata. The national Gini coefficient of EC and the GDP is higher than 0.5, indicating significant inequities countrywide. These results stress the need to complement the current policies more focused on achieving full access to electricity and less oriented to address the need for higher EC in households to improve welfare for the low-income and rural citizens. However, governmental projections for 2030 forecast minor improvements in this direction.