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The linkage between income inequality, opportunity and renewable energy demand: Panel evidence from OECD economies

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  • Sahu, Anjan Kumar
  • Mahalik, Mantu Kumar

Abstract

The ramifications of income inequality have sparked significant interest among energy policymakers and academia, leading them to explore its influence on renewable energy consumption. While prior research has investigated the rapport between income disparity and clean energy demand, the moderating role of the opportunity (intergenerational mobility) available has been largely overlooked. This study proposes that the connection between economic inequality and renewable energy consumption depends on the level of intergenerational mobility. This study utilizes newly developed intergenerational mobility data from the Global Database on Intergenerational Mobility (GDIM) released by the World Bank to test the hypothesis. The empirical investigation uses the system-generalized method of moments (GMM) covering 37 OECD economies from 1995 to 2019. The outcomes reveal a positive moderating role of intergenerational mobility on renewable energy demand. This finding implies that societies with lower intergenerational mobility may experience a more pronounced adverse effect of income inequality on clean energy consumption than societies with higher intergenerational mobility. The findings highlight the need for stakeholders to develop targeted initiatives that enhance intergenerational mobility and bridge the income gap, fostering equitable access to renewable energy technologies.

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  • Sahu, Anjan Kumar & Mahalik, Mantu Kumar, 2025. "The linkage between income inequality, opportunity and renewable energy demand: Panel evidence from OECD economies," Renewable Energy, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:renene:v:243:y:2025:i:c:s0960148125002502
    DOI: 10.1016/j.renene.2025.122588
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    Keywords

    Income inequality; Intergenerational mobility; Renewable energy consumption;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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