Financial development, green energy security and income inequality: dynamic panel quantile regression approach

Purpose This paper examines the relationship between financial development, green energy security, and income inequality for emerging and developing economies. Design/methodology/approach The authors use dynamic panel quantile regression with nonadditive fixed effects for a sample of 112 emerging and developing economies spanning from 2001 to 2021. Findings The findings demonstrate that financial development has a nonlinear relationship with income inequality. The interaction term between financial development and green energy security indicates that there is an inverted U-shaped relationship. Originality/value Limited studies have investigated the combined impact of financial development and green energy security on inequality. The majority of previous research has focused on the relationship between financial development and inequality or the relationship between energy security and inequality. The combined impact of these two variables on income inequality has not been examined in previous studies.