Bridging Inequality and Energy Transition: Leveraging Natural Resource Rents to Achieve <scp>SDG</scp> 1, <scp>SDG</scp> 7, and <scp>SDG</scp> 10

ABSTRACT Achieving a sustainable and inclusive energy transition remains a pressing global challenge, particularly for resource‐dependent economies where energy structures and income distribution are closely intertwined. While prior studies have typically examined either the link between natural resource rents and energy transition or that between inequality and energy transition, few have analyzed the joint relationship among these three factors or explored their nonlinear interactions. Addressing this gap, this study investigates how natural resource rents and income inequality jointly influence renewable energy consumption, thereby contributing to the realization of SDG 1, SDG 7, and SDG 10. Using a balanced panel of 93 countries from 2012 to 2021, this study employs a comprehensive econometric framework that tests for serial correlation, cross‐sectional dependence, and stationarity, and further applies panel threshold models to capture potential nonlinearities. The results show that natural resource rents exert a significant negative effect on renewable energy consumption, confirming the “resource curse” hypothesis. Importantly, income inequality intensifies this negative relationship, suggesting that unequal income distribution magnifies the obstacles to energy transition. Furthermore, results stratified by income level and resource dependency indicate that the adverse impact is most severe in high‐income, highly resource‐dependent countries under high inequality, while middle‐income and low‐dependency economies display more nuanced patterns. Overall, the study underscores the urgency of tailored, inequality‐sensitive policies to promote sustainable development.