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Socioeconomic inequality in low-carbon technology adoption

Author

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  • Burlinson, Andrew
  • Davillas, Apostolos
  • Giulietti, Monica

Abstract

The widespread adoption of low-carbon technologies (LCTs) by residential consumers is a cornerstone of net zero targets worldwide; however, LCT adoption may not be equally distributed across socioeconomic groups. Our paper contributes to the related literature by exploring socioeconomic inequality in LCT adoption and its underlying sources. We exploit nationally representative longitudinal data on the adoption of three key LCTs (solar photovoltaics, solar water heating, and electric vehicles) in the UK. We investigate the aggregate role of predetermined socioeconomic factors in determining socioeconomic inequalities in LCT adoption. We further contribute to the literature by employing Shapley-decomposition techniques to reveal the relative contribution of each individual socioeconomic factor to the total estimated socioeconomic inequality. Our results suggest that socioeconomic inequalities in LCT adoption have fallen over the last decade but remain prevalent, non-negligible in magnitude and highly statistically significant. Our analysis of longitudinal LCT adoption patterns shows that those consumers who have recently adopted LCTs, are contributing to the reduction in the observed socioeconomic inequalities over time. Policies targeting groups with the most disadvantaged socioeconomic background are crucial in order to mitigate the observed inequalities, potentially hindering a more rapid low-carbon transition.

Suggested Citation

  • Burlinson, Andrew & Davillas, Apostolos & Giulietti, Monica, 2025. "Socioeconomic inequality in low-carbon technology adoption," Energy Economics, Elsevier, vol. 143(C).
  • Handle: RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325000672
    DOI: 10.1016/j.eneco.2025.108244
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    More about this item

    Keywords

    Technology adoption; Inequality; Low carbon technologies; Renewable resources;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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