Rich enough to go green? A threshold regression analysis on the nonlinear effects of income on renewable energy demand

• Income cut-offs: world ∼USD 13.7k; AEs ∼USD 43k; EMDEs ∼USD 6.6k. • World & EMDEs: income lowers renewables below cut-off, raises above. • AEs: income raises renewables both sides, much stronger above the cut-off. • Estimated via dynamic panel threshold model with endogeneity controls. We revisit whether the income-renewable energy nexus is nonlinear and regime-dependent, and complement the established U-shaped income-renewable energy relationship by determining threshold income values. Using a panel of up to 189 countries over 1990–2021, we estimate a dynamic panel threshold regression that accommodates endogeneity and lagged dependence. We identify statistically significant income thresholds of $13,726 (global), $43,000 (advanced economies, AEs), and $6588 (emerging markets and developing economies, EMDEs). Below the threshold, a 1% rise in income reduces renewable energy consumption by about 0.03% globally and 0.13% in EMDEs; above the threshold, the effect turns positive (about 0.16% globally and 0.01% in EMDEs). Thus, the Renewable Energy Kuznets Curve (RKC) is confirmed. For AEs, the association is positive on both sides and markedly stronger above the threshold. Thresholds and signs remain stable across five stress tests. The cut-offs stay within narrow bands (global $15,693-$17,189; AEs $38,522-$43,521; EMDEs $4989-$6412).