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Income inequality and equitable access to energy through the energy transition

Victoria Baikie
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Victoria Baikie: Monash University

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

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.

Keywords: Energy Transition; Income Inequality; Solar; Energy Prices JEL classifications: P28; Q43; Q58; O15 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:71

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