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Income inequality and equitable access to energy through the energy transition

Author

Listed:
  • Baikie, Victoria

    (Monash University)

Abstract
This paper analyses how income inequality changes through the clean energy transition. Gini Coefficients are used to present overall changes in inequality over the chosen time period. Influences of rooftop solar and electrification are considered in this report as the literature suggests there is unequal access to these technologies. Key findings suggest the energy transition contributes to an overall decline in inequality from 2023 to 2050 and energy prices become cheaper. Larger proportion of households with solar, reduces the burden of high energy prices. However, the fall in inequality is shown to not be equal across all income brackets with the lowest two brackets declining the least. In the data, the gap between the highest and lowest income brackets remains prevalent at the point of Net Zero.

Suggested Citation

  • Baikie, Victoria, 2024. "Income inequality and equitable access to energy through the energy transition," Warwick-Monash Economics Student Papers 71, Warwick Monash Economics Student Papers.
  • Handle: RePEc:wrk:wrkesp:71
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/71_-_victoria_baikie.pdf
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    More about this item

    Keywords

    Energy Transition ; Income Inequality ; Solar ; Energy Prices JEL classifications: P28 ; Q43 ; Q58 ; O15;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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