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Tackling the Income Inequality, Energy Consumption, and Decarbonisation Nexus.

Is the Latest Research “Putting the Last First”?


Viktoria Ruseva


Abstract:


Income inequality, energy consumption, and carbon emissions are closely related. While it is certain that high-income groups consume more energy overall globally, it is less clear how this translates into different patterns of energy consumption, among and within countries. Yet, in the context of the climate crisis, the relationship between largely unequal income distribution and the resulting disparities in household energy consumption is central for co-generating pathways toward sustainable development, especially in developing countries. As such, designing policy based on energy consumption patterns per income group has the immense potential to target those who need it most, anywhere in the world.

Within this context, the current paper provides a brief overview of the latest research on the topic and addresses persisting gaps in knowledge of the income inequality, energy consumption, and decarbonisation nexus. The review explores whether suggested policy measures to tackle the nexus, are “putting the last first” while leaving no one behind. While much uncertainty regarding the nature, directionality, and internal dynamics of this interrelationship remains, there is a promising shift in research toward context-specific energy consumption patterns based on household income, with policy implications of the nexus findings being directly linked to sustainable development efforts.





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