Renewable energy, energy diversity and income inequality: the case of OECD countries
Keywords:
Renewable energy, energy diversity, income inequalityAbstract
This study investigates the impact of renewable energy and energy diversity on income inequality. To this end, OECD countries were analyzed for the period 1996-2021. According to the results obtained from the GMM method, income inequality increases as energy diversity increases. Similarly, income inequality increases as renewable energy production increases. These findings demonstrate that developments in the renewable energy sector and, consequently, increased energy diversity worsen income inequality. Therefore, while promoting the development of renewable energy, additional policies should be implemented to mitigate its unfavorable impact on income inequality.
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