Analyzing global inequality in access to energy: Developing policy framework by inequality decomposition.
Avik Sinha1, Daniel Balsalobre-Lorente2, Muhammad Wasif Zafar3
1Centre for Excellence in Sustainable Development, Goa Institute of Management, India.
Journal of Environmental Management
|December 19, 2021
Summary
Energy poverty is a global challenge, exacerbated by labor and energy market interactions. This study reveals rising inequality in energy access, potentially creating a vicious cycle hindering Sustainable Development Goals (SDGs).
Area of Science:
- Economics
- Energy Policy
- Sustainable Development
Background:
- Energy poverty remains a critical global policymaking issue.
- Existing solutions often overlook the root causes of energy poverty.
- The interplay between labor and energy markets is a significant factor in energy access inequality.
Purpose of the Study:
- To analyze the components of inequality in energy access globally.
- To investigate the demand-side drivers of energy poverty.
- To inform policy for achieving Sustainable Development Goals (SDGs) 7, 8, and 10.
Main Methods:
- Employed the Kaya-Theil Decomposition method.
- Conducted a global-level analysis from 1990 to 2019.
- Focused on demand-side factors influencing energy poverty.
Main Results:
- All components of energy access inequality showed an increasing trend during the study period.
- Identified a potential feedback loop contributing to a global 'Vicious Circle of Energy Poverty'.
- Highlighted the demand-side dimension as a key contributor to energy poverty.
Conclusions:
- Rising energy access inequality poses a significant threat to achieving global development objectives.
- The 'Vicious Circle of Energy Poverty' requires targeted policy interventions.
- Recommended a policy framework to address energy poverty and promote equitable energy access.
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