Exploring the impact of energy poverty on carbon inequality in the light of global evidence

Energy is a cornerstone of modern society that plays a pivotal role in mitigating carbon inequality. This study examines the impact of energy poverty on carbon inequality using global panel data from 2000 to 2019. The findings reveal that alleviating energy poverty effectively reduces carbon inequality, with the most substantial effect observed when improving access to energy services. Notably, reducing poverty leads to a greater increase in per-capita carbon emissions among the poorest 50% of the population than among the top 10%. This is one of the key reasons that reducing energy poverty can mitigate carbon inequality. Moreover, reducing energy poverty through improvements in both the quality and accessibility of energy services can influence carbon inequality by affecting income disparities, limiting employment opportunities, and hindering the utilization of renewable energy sources. Furthermore, reducing energy poverty alleviates carbon inequality in low- and middle-income countries. However, alleviating energy poverty exacerbates carbon inequality in upper-middle-income countries. In light of these findings, this study proposes that governments adopt locally appropriate measures to alleviate energy poverty and strengthen coordinated governance over energy poverty and carbon emissions.