The Green Divide: How sustainable solutions can close the energy poverty gap

This study examines energy poverty, a worldwide issue that hinders socioeconomic advancement and disproportionately impacts marginalised groups by restricting their access to opportunities. Economic inequality is a major contributing element, as income disparities have a direct impact on the availability, affordability, and dependability of energy, especially in emerging and developing nations. We also see that environmental deterioration caused by unsustainable energy usage exacerbates the issue. Our study examines energy poverty and income inequality data using a regression model that incorporates Panel-Corrected Standard Errors (PCSE) and Feasible Generalised Least Squares (FGLS) approaches, highlighting the crucial role that sustainable energy access plays in accomplishing the UN Sustainable Development Goals (SDGs). Our quantitative results (where coefficients represent the point change in inequality indices per unit change in independent variables) indicate that government investment in infrastructure considerably reduces energy poverty; for instance, FGLS government spending coefficients were -0.014 for Gini and -0.063 for Palma. Adoption of renewable energy has a mixed effect; the FGLS-Palma model indicates a significant negative effect (-1.155), while other models show positive coefficients (e.g., FGLS-Gini: 0.059), suggesting possible regressive distributional issues or high initial technology transfer costs during the early stages of transition. Importantly, energy poverty is made worse by urbanisation (PCSE-Palma urbanisation coefficient: 0.420), and if rising income gaps are not adequately addressed, the problem will only get worse. To guarantee widespread access and promote long-term global fairness, this research promotes comprehensive policy reforms that give priority to technical innovation, international cooperation, and investments in sustainable energy infrastructure.