A panel analysis of income inequality and energy use

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Abstract

This paper investigates the relationship between energy consumption and income inequality in an unbalanced panel of 144 countries over the period 1990–2018. Using fixed effect and instrumental variable panel methods and controlling for other determinants of inequality, I find a large and strong negative relationship between energy use and income inequality. The paper also demonstrates that results hold for models which divide the total sample into subsamples of economic blocs and regions. In addition, greater energy use reduces the income share of the top 10% and increases the share of the bottom 40%.

Original languageEnglish
Pages (from-to)83-97
Number of pages15
JournalContemporary Economic Policy
Volume40
Issue number1
DOIs
StatePublished - Jan 2022

Keywords

  • energy
  • income inequality
  • panel methods

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