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Impact of income inequality on renewable energy demand in south Asian economies

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  • Mahalik, Mantu Kumar
  • Patel, Gupteswar
  • Sahoo, Bimal Kishore
  • Rahman, Mohammad Mafizur

Abstract

The demand for renewable energy is growing worldwide due to environmental degradation. However, in poor countries, the use of renewable energy may be impeded by the level of poverty and income inequality. Therefore, this paper studies the income inequality impact on renewable energy demand in seven South Asian economies by using the balanced panel data from 1996 to 2018. The study employs generalized methods of moments (GMM) estimation technique followed by other econometric approaches to check the robustness of findings. The renewable energy demand function includes economic growth, carbon emissions, and government effectiveness as control variables. The study has found the adverse effects of income inequality, economic growth, and carbon emissions on renewable energy demand. Government effectiveness also drives renewable energy use. The findings are robust and reliable concerning panel data methods used in the analysis. These findings bear important policies for a sustainable environment in South Asian economies.

Suggested Citation

  • Mahalik, Mantu Kumar & Patel, Gupteswar & Sahoo, Bimal Kishore & Rahman, Mohammad Mafizur, 2023. "Impact of income inequality on renewable energy demand in south Asian economies," Energy Policy, Elsevier, vol. 180(C).
    • Handle: RePEc:eee:enepol:v:180:y:2023:i:c:s0301421523002136
    DOI: 10.1016/j.enpol.2023.113628
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    2. Muğaloğlu, Erhan & Kuşkaya, Sevda & Aldieri, Luigi & Alnour, Mohammed & Hoque, Mohammad Enamul & Magazzino, Cosimo & Bilgili, Faik, 2023. "Dynamic regime differences in the market behavior of primary natural resources in response to geopolitical risk and economic policy uncertainty," Resources Policy, Elsevier, vol. 87(PB).

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    More about this item

    Keywords

    Renewable energy; Income inequality; Panel data method; South asian economies;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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