Drivers of inequality in CO ₂ per capita emissions: The role of the energy transition in the European Union

This paper analyses the evolution of inequality in CO2 per capita (CO2pc) emissions in the 27 EU countries and its driving forces (1990–2018). The measure of inequality is the Theil index, which is additively decomposable by factors and population sub-groups. Along with the traditional factors (e.g. carbon intensity of the energy mix, energy intensity of GDP, and GDP per capita), we introduce three new factors, namely the contribution of the electricity sector, the development of renewable energy and the progress of renewable electrification. We find that total inequality declined between 1990 and 2018. Over the whole period, carbon intensity of electricity production and renewable energy development are the main drivers of emissions inequality. In this sense, factors like energy intensity of GDP and GDP per capita are no longer so relevant to explain inequality in CO2pc emissions. Therefore, we stress the urgency of cohesion policies linked to technology transfers that ensure clean electrification of the economy, as they are crucial to fight climate change while reducing emissions inequality.