Energy Equity Research Articles

AN OVERVIEW OF ENERGY CONSUMPTION AND CO2 EMISSIONS IN IRAN'S RESIDENTIAL SECTOR: ENERGY TRANSITION AND SUBSIDY POLICIES

The transition from fossil fuels to renewable energy sources has become a critical global issue, particularly in response to climate change. This study aims to analyse the trends in energy consumption and CO2 emissions within Iran's household sector. The findings reveal a significant increase in energy consumption in Iran between 2001 and 2019. Despite the household sector's heavy reliance on fossil fuels, a shift in fuel consumption patterns can be observed, with a transition from oil to natural gas starting in 2008. Electricity generation in Iran is also predominantly fossil fuel-based, with natural gas playing a major role. This underscores the urgent need to reinforce renewable energy sources to mitigate CO2 emissions from the household sector. Another key factor influencing energy consumption in Iran is the country's extensive energy subsidies. The disparity in fuel prices compared to neighbouring countries has also led to fuel smuggling. However, the results show that the twophase subsidy reform plan implemented in 2010 and 2013 did not lead to a reduction in energy consumption. Therefore, further reforms are needed to improve energy equity and reduce CO2 emissions in the household sector.

Unclean but affordable solid fuels effectively sustained household energy equity.

Extensive use of traditional solid fuels necessitates a clean transition to modern energy, yet rising costs hinder equitable progress, presenting a challenge that remains underexplored. Here we quantify household energy inequities in China and evaluate shifts during the cooking and heating transition by compiling data from nationwide questionnaire surveys and statistic datasets. We find that by meeting 42.6% of household energy needs at low costs, solid fuels sustain equitable energy consumption across different income groups, being measured by the Concentration Index (CI). However, energy burden inequity remains substantially with the CI value increases by up to 43% during the transition, particularly when moving away from biomass for cooking. Switching to electric heating with natural gas cooking would limit such increases by only 15.5%. The study underscores the negative equity impacts of solid fuel cessation, advocating for phased transitions and targeted subsidies to ensure a just clean energy transition.

How grid reinforcement costs differ by the income of electric vehicle users

The simultaneous charging of many electric vehicles in future mobility scenarios may lead to peaks and overloads threatening grid stability. The necessary infrastructure investments vary by the number and model type of vehicles driven and the residents’ charging preferences. These attributes significantly depend on socio-economic factors such as income. Using power flow simulations based on real-life driving profiles, we predict massive cost asymmetries with an investment demand up to 33-fold in higher-income compared to lower-income neighborhoods. Many grid operators may redistribute these costs through an across-the-board electricity price increase for all households. In times of rising electricity prices, these unwanted inequitable costing allocations could lead to severe challenges and energy poverty. Policymakers should consider countermeasures like dynamic electricity pricing schemes, income-based electric vehicle subsidies, or improved charging network access to ensure energy equity in future mobility scenarios. Our analysis of the impact of socio-economic factors on electric vehicle grid infrastructure and their quantification contributes to the energy equity discussion.

Designing effective policy frameworks for the implementation of microgrids in developing countries: Opportunities, challenges and pathways to sustainable energy access

Designing effective policy frameworks for the implementation of microgrids in developing countries is crucial for advancing sustainable energy access. Microgrids offer a decentralized and resilient solution to energy challenges, particularly in regions with limited grid infrastructure. However, the successful deployment of microgrids requires a nuanced understanding of the opportunities, challenges, and pathways to integration within the unique contexts of developing nations. This study explores the key factors influencing the design and implementation of microgrid policies, including regulatory environments, financial incentives, and technological innovations. It highlights the potential of microgrids to enhance energy security, reduce carbon emissions, and support economic development. At the same time, it addresses the challenges related to financing, regulatory compliance, and the need for capacity-building in local communities. By analyzing case studies from various developing countries, the study identifies best practices and strategic recommendations for policymakers to create supportive frameworks that encourage the adoption of microgrids. The research underscores the importance of international collaboration, public-private partnerships, and adaptive policy mechanisms that can respond to the evolving needs of the energy sector. Ultimately, the study provides a roadmap for leveraging microgrids as a key component of sustainable energy strategies in developing countries, contributing to broader goals of energy equity, environmental sustainability, and economic resilience.

Analisis Teknis dan Keekonomian Sistem Hibrida Pada Pelayanan Kelistrikan Pulau Rhun

Indonesia, as the largest archipelagic country, faces significant challenges in providing consistent electricity to its numerous isolated microgrids, many of which rely on diesel generators. The limited operational hours of these systems hinder economic growth, especially in remote regions like Rhun Island. This research aimed to develop an optimized hybrid power system integrating photovoltaic (PV) panels and Battery Energy Storage Systems (BESS) to extend electricity availability and reduce reliance on fossil fuels. Using simulation tools such as PVsyst and HOMER Pro, the study evaluated various configurations to identify the most cost-efficient and sustainable solution. Additionally, Demand Side Management (DSM) strategies, including peak clipping and load shifting, were applied to further optimize the system's performance and reduce operational costs. The findings demonstrated that the hybrid system significantly decreased the Levelized Cost of Energy (LCOE) to $0.431/kWh compared to a diesel-only system. Furthermore, the renewable energy fraction increased to 81.7%, contributing to Indonesia's energy transition goals. This research offers a replicable model for other small islands, promoting sustainable energy solutions and supporting local economic development by ensuring a stable 24-hour power supply. The implications suggest that adopting hybrid systems with DSM can accelerate energy equity and environmental sustainability in remote areas.

Low-carbon transition or low-carbon trap? — An instrumental variable regression analysis based on carbon decoupling and energy equity

ABSTRACT Although the low-carbon transition has enormous potential for improving economic and environmental benefits, it may also lead to social equity issues, trapping certain regions in a low-carbon dilemma. Based on panel data from the Yangtze River Economic Belt for the period 2007–2019, this study empirically analyzes the impact of carbon decoupling on energy equity, employing the carbon emission trading policy and natural wetlands as joint instrumental variables. The findings reveal that: (1) from 2007 to 2019, the average level of carbon decoupling in the Yangtze River Economic Belt was recorded at 0.415, maintaining a weak decoupling state overall and nearly forming an “inverted V” shape; (2) in the instrumental variable regression results, for every 1% increase in the level of carbon decoupling, the energy equity in the Yangtze River Economic Belt decreased by an average of 0.095% (p < .01); (3) environmental burden played a partial mediating role between carbon decoupling and energy equity, with the mediation effect value being −0.007 (p < .05); (4) green energy consumption and marketization can variably mitigate the adverse effects of carbon decoupling. Examining the sustainability of the economic-environmental system from the perspective of energy equity contributes to shaping a low-carbon economy that maintains social justice and sustainability, thereby avoiding falling into a low-carbon trap.

Multi-scale retrofit pathways for improving building performance and energy equity across cities: A UBEM framework

Institutional inequality has created an environment in which our physical surroundings reflect racial and economic biases – causing inequitable thermal comfort and energy consumption across neighborhoods. Just as energy and thermal comfort challenges are unique to each climate and built environment, the solutions to address these issues should be optimized for their context. We introduce a novel integrated data-driven and building energy simulation method that incorporates urban context, satellite imagery, and socioeconomic data to analyze multi-scale retrofit scenarios across disparate communities. We apply this method to case studies in New York City and Los Angeles to analyze energy and thermal comfort inequities across distinct climate zones and urban morphologies. Through parametric analysis, we demonstrate the efficacy of multi-scale retrofits at improving building performance and reducing existing thermal inequities. Our research shows that retrofit effectiveness is influenced by the microclimatic changes induced by the urban context and existing infrastructural inequity. For example, instantaneous building cooling energy demand in a disadvantaged community of Los Angeles is reduced more due to window retrofits (around 30 kWh) than by a greenspace retrofit (around 3 kWh). Greenspace installation dissipates more heat overnight and in the early morning, whereas window retrofits reduce solar heat gain during the day, showing the different heat reduction pathways that retrofits can achieve. Although the window retrofits lead to an order of magnitude higher utility cost savings ($70 savings from windows vs $9 for greenspace and $12 for reduced cars), the district-scale retrofits show promising pathways for reducing the cost burden across all residents. We also analyze pathways for achieving city-specific CO2 reduction targets and find that building-level retrofits are most effective at meeting building performance standards (reducing CO2 by 40%), whereas district-level retrofits should be used to achieve city-scale climate goals because of the sequestered and abated emissions offered by these pathways. This generalizable modeling framework empowers policymakers, urban planners, and building owners around the world to analyze pathways for meeting their climate action plan goals by reducing extreme heat, reducing greenhouse emissions, and reducing energy cost burden while improving environmental justice in their cities.

Opportunities in clean energy equity markets: the compelling case for nuclear energy investments

Opportunities in clean energy equity markets: the compelling case for nuclear energy investments

Energy firms in China towards resilience: A dynamic quantile connectedness approach

Α comprehensive understanding of the energy and technology sectors is imperative for the implementation of effective climate and industrial policies. This study investigates the quantile interconnectedness between the top five energy equities and the top five technology equities, listed on the Shanghai Stock Exchange 50 Index (SSE50), based on market capitalization. Employing the Quantile VAR methodology, we uncover significant interconnectedness across various quantiles of the return distribution for both energy and technology equities. This implies that price fluctuations within one sector can have a significant effect on the other. Furthermore, our analysis reveals directional connectedness, where energy equities consistently influence technology equity prices throughout the entire period of investigation. Additionally, a heightened degree of interconnectedness is observed during periods of extreme market movements, i.e. in the upper and lower tails of the return distribution. This suggests a more integrated system during stressed conditions, where all equities under investigation exhibit a magnified influence on each other, potentially leading to amplified volatility spillovers. These findings provide valuable insights for investors, portfolio managers, and policymakers, enabling them to develop more informed investment strategies and construct robust risk management frameworks.

Towards Energy Equity: Understanding and Addressing Multifaceted Energy Inequality

Given the pressing necessity to mitigate the consequences of climate change, it is of the utmost importance to establish a carbon-neutral society. Nevertheless, sustainability is significantly impeded by energy inequality. It is the term used to describe the unequal distribution, access, and utilization of energy resources among demographic groups, which has been further exacerbated by the pandemic and geopolitical tensions. This research aims to conceptualize and quantify energy inequality in Lithuania and compare it with EU data in order to bolster the ambitious objective of a climate-neutral Europe by 2050. This article elucidates the intricacy of energy inequality by utilizing a Lithuanian population survey and a literature review, which are supplemented by an EU macroeconomic analysis. The findings underline the necessity of locally tailored solutions and underscore the significant disparities in energy access between Lithuanian regions and demographic groups. Targeted policy measures are necessary to overcome economic, technological, and socio-political obstacles that impede progress toward a climate-neutral society. The necessity of a multidimensional approach and global cooperation is underscored by a comparative analysis of EU statistics, which reveals variable progress in addressing energy inequality. Theis research is a pertinent contribution to the discourse on sustainability and social justice, and it offers policy-makers, practitioners, and stakeholders guidance for a more inclusive and sustainable energy future.

IEEE Brings Energy Equity and Safety (Proactive “Loss of Life” Prevention) to Molokai Native Hawaiian Homesteaders: Helping Those Without Access to Grid Electricity and Low-Income Renters With Island Nano-Grid/Clusters

IEEE Brings Energy Equity and Safety (Proactive “Loss of Life” Prevention) to Molokai Native Hawaiian Homesteaders: Helping Those Without Access to Grid Electricity and Low-Income Renters With Island Nano-Grid/Clusters

Environmentally clean and dirty energy equities during extraordinary global conditions

I examine which extraordinary international events coincide with pronounced changes in the equity markets for some of the world’s largest publicly traded suppliers on opposite sides of the global energy mix — oil and environmentally clean energy companies. First, I adapt an intuitively appealing non-parametric filter to empirically timestamp unexpected and prominent increases and decreases in a wide range of global indicators relevant to the international energy market. Then, I use such extraordinary conditions to characterise the performance of oil and environmentally clean energy equities, and their relationships. My findings suggest that jumps in the global stock market, international crude oil market shocks, and the US dollar real effective exchange rate, are the indicators that define the financial landscape during which considerable gains, losses, and instability across both types of energy markets materialise. In contrast, major elevated uncertainties related to geo-political risk and climate policy reflect relative stability in the equities of both oil and environmentally clean energy companies. Although these results imply that both energy assets are potentially lucrative hedging strategies for investors to exploit during heightened geo-political and climate policy uncertainties, clean energy equities offer market participants the option to combine profit maximising and sustainability objectives while minimising global energy security risks.

Passive over active: How low-cost strategies influence urban energy equity

This study delves into the energy burden on households, a crucial aspect of energy justice, influenced by urban environment factors and buildings’ passive and active designs. It evaluates the effects of passive and active design features on household energy expenditures at the census tract scale. Applying advanced Machine Learning techniques, including multiple and decision tree regressions, random forests, support vector machines, XGBoost, and Neural Networks, the research assesses the impact of various factors on the energy burden. Findings reveal that passive design elements significantly outweigh active ones in reducing energy costs at the urban scale, as confirmed by a model with a 94.8 % R2 accuracy. The insights provided are vital for policymakers, urban planners, architects, and researchers, pushing for sustainable urban planning and energy justice by prioritizing effective design strategies. This contributes to a broader understanding and implementation of energy-efficient measures in urban development.

Short-term impacts vs. long-term contributions: The role of clean energy and ESG investments in China

This paper is the first in the literature on Environmental, Social, and Governance (ESG) investments and clean energy markets to employ a time-frequency-quantile framework, exploring the interrelations among energy commodities (such as oil, coal, and coke), clean energy equities, and ESG investments in China. The main findings reveal that, in the short term, clean energy equities are substantial net contributors, while commodity markets primarily act as recipients. Over a long horizon, ESG investments emerge as the foremost contributors, followed by coke and solar investments, while clean energy equities diminish in significance. Oil, nuclear equities, and green bonds are significant recipients in this dynamic. Furthermore, our analysis highlights the dominance of short-term shocks over long-term shocks in influencing these markets. Quantile analysis underscores unique behaviors under extreme market conditions. Notably, strong connections between oil and coke with other financial markets are observed during extreme periods, such as bull or bear phases, contrasting with their interactions under normal conditions. Conversely, coal exhibits strong interdependencies across various market scenarios, distinguishing it from the patterns observed for oil commodities.

The role of energy equity and income inequality in environmental sustainability

Progress in energy equity, income equality, and environmental quality are fundamental to sustainable development. However, studies providing evidence-based recommendations concerning the joint effect of energy equity and income inequality on environmental sustainability in Africa are lacking. This study fills this gap by using a panel dataset covering 41 African countries from 2008 to 2019. Results from the Driscoll-Kraay standard errors and the dynamic system GMM estimators reveal the following: (1) energy equity promotes environmental quality, whereas income inequality hampers it, and (2) income inequality nullifies the favourable environmental gains of energy equity. These findings remain consistent when we use the ecological footprint as an alternative measure of environmental quality. We conclude that addressing income inequality is essential for ensuring that energy equity enhances environmental quality. Policymakers should prioritise energy equity and fairer income distribution initiatives to achieve sustainable development goals.

Is the Economy, Environment and Energy (3E) System Sustainable?—An Analysis of the Coordination Degree of Carbon Decoupling and Energy Equity in the Yangtze River Economic Belt

As the climate crisis intensifies, the low-carbon transition seems to be the necessary path to maintain the sustainability of the 3E system. However, does it no longer pose potential threats to sustainability? In the context of the low-carbon transition, this study reveals hidden worries about the sustainability of the 3E system from an energy equity perspective, specifically focusing on the coordination between carbon decoupling and energy equity. This study innovatively calculates the level of carbon decoupling and energy equity in China’s Yangtze River Economic Belt from 2008 to 2019 and explores the degree of coordinated development between carbon decoupling and energy equity by employing the coupling coordination model and bivariate local Moran index. The results show the following: (1) from 2008 to 2019, the energy equity in the Yangtze River Economic Belt showed steady improvement, but the overall level was still not high, being below 0.5; (2) the upstream and downstream regions showed more obvious resistance in maintaining the coordinated development of carbon decoupling and energy equity, but there are structural differences among them; (3) inter-basin differences were an important feature of the low-carbon economy and equitable energy development in the Yangtze River Economic Belt in the past. This study provides policy implications and research insights for promoting the sustainability of the 3E system in transition countries from an energy equity perspective.

Energy Equity: A Global Imperative For Climate Resilience [In My View]

Energy Equity: A Global Imperative For Climate Resilience [In My View]

Energy for all: Energy Equity and Justice in Power Systems [Guest Editorial]

Energy for all: Energy Equity and Justice in Power Systems [Guest Editorial]

Can renewable energy development facilitate China's sustainable energy transition? Perspective from Energy Trilemma

Comprehensive assessment of energy systems and the roadmap for a sustainable energy transition are becoming more and more important themes in academic research to mitigate climate risk. This study establishes an evaluation system for the level of energy trilemma (ET) at the provincial level in China and analyzes the impact and mechanism of renewable energy development on ET. The results show that (1) the national ET index shows an upward trend, and the energy system has been continuously optimized, albeit with spatial disparities across provinces. (2) Renewable energy development positively impacts ET, and the positive impacts of hydropower generation are significant. (3) The results of the mechanism analysis indicate that renewable energy development can indirectly promote sustainable energy transition by improving technological innovation and green productivity. (4) Under inter-provincial electricity transfer, the impact of renewable energy on optimizing the ET in net electricity exporting regions is less significant compared to that in net electricity importing regions. Therefore, it is crucial to focus on the synergistic development of energy security, energy equity, and environmental sustainability, especially by supporting net electricity exporting regions, to promote a more balanced and sustainable development of the energy system.

Do climate risks affect dirty–clean energy stock price dynamic correlations?

Prior studies have extensively exhibited an interest in exploring the connectedness between dirty and clean energy stock prices alongside the drivers of such price connectedness, shedding light on hedging strategies for finance practitioners. Nevertheless, no empirical research has examined whether climate risks, the emerging indicator for investors to handle the divestment of dirty energy stocks, have affected the time-varying dirty–clean energy equity price nexus. This study fills this gap by innovatively identifying dynamic conditional correlations (DCCs) between dirty and clean energy stock prices. An ARDL/NARDL model is applied to assess whether the climate risks affect such correlations by controlling for business cycles, funding liquidity, USD values, and oil market sentiments. Overall, we detect an undeniable negative impact of climate risks on the positive dirty–clean energy price dynamic correlations. Additionally, the NARDL model results reveal that a rise in federal fund rates exerts higher effects on the dirty–clean energy stock price comovements. Our findings suggest the strengthened potential of hedging clean energy stocks against dirty energy equities in case of escalating climate risks and heightened fossil fuel price volatilities. Furthermore, substantial attention is required to account for monetary policies' asymmetric effects on clean energy investment.