Climate change and income inequality: Does renewable energy matter?

Cong Minh Huynh () and Thi Nga Phan

Renewable Energy, 2024, vol. 233, issue C

Abstract: Asia, the continent most vulnerable to climate change, presents policymakers with the dual challenges of significant income inequality and a scarcity of alternative energy sources. This paper investigates the impact of climate change on income inequality, and the role of renewable energy in moderating this impact for a panel data set of 36 Asian countries over the period of 1990–2021. Results from panel data analysis techniques show that climate change exacerbates the income inequality while renewable energy not only reduces income inequality but also lessens the detrimental impact of climate change on income equality through the channels of job creation and access to renewable energy. Remarkably, the role of renewable energy becomes stronger in those countries that are more exposed to climate change. The findings are robust with different estimation methods as well as various proxies of climate change and income inequality. These results highlight the critical role of renewable energy policies in promoting both environmental sustainability and socioeconomic equity. Through this paper, we aim to provide invaluable insights that can aid policymakers in making informed decisions to advance a future marked by sustainability, equity, and resilience.

Keywords: Asian countries; Climate change; Income inequality; Renewable energy (search for similar items in EconPapers)
JEL-codes: D31 Q28 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:233:y:2024:i:c:s0960148124012151

DOI: 10.1016/j.renene.2024.121147

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