Does Income Inequality Influence Energy Consumption in the European Union?
This study examines the emerging challenge of how income inequality affects household energy consumption within the European Union amidst the ongoing energy crisis. Using the Gini index and the gender pay gap as indicators of income inequality, the analysis covers the period 2000–2023 across EU memb...
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| Language: | English |
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MDPI AG
2025-02-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/18/4/787 |
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| author | Mihaela Simionescu Bogdan Oancea |
| author_facet | Mihaela Simionescu Bogdan Oancea |
| author_sort | Mihaela Simionescu |
| collection | DOAJ |
| description | This study examines the emerging challenge of how income inequality affects household energy consumption within the European Union amidst the ongoing energy crisis. Using the Gini index and the gender pay gap as indicators of income inequality, the analysis covers the period 2000–2023 across EU member states. Dynamic panel data models reveal that the Gini index negatively impacted final energy consumption per capita as well as energy consumption specifically from gas oil and diesel, while the gender pay gap is associated with less energy consumption in the realms of natural gas and ambient heating. Causality is further explored through recent methodology developed for panel data and Bayesian networks, and the results confirm the causality between energy consumption and income inequality. To address the complex relationship between income inequality and energy consumption, policymakers should implement integrated strategies promoting energy efficiency, clean energy transitions, gender equality, and social safety nets, particularly in light of the energy crisis exacerbated by the Russia–Ukraine conflict. |
| format | Article |
| id | doaj-art-eeaa4afe7d49468b8c84a404a751ae49 |
| institution | DOAJ |
| issn | 1996-1073 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj-art-eeaa4afe7d49468b8c84a404a751ae492025-08-20T02:44:49ZengMDPI AGEnergies1996-10732025-02-0118478710.3390/en18040787Does Income Inequality Influence Energy Consumption in the European Union?Mihaela Simionescu0Bogdan Oancea1Faculty of Business and Administration, University of Bucharest, 030018 Bucharest, RomaniaFaculty of Business and Administration, University of Bucharest, 030018 Bucharest, RomaniaThis study examines the emerging challenge of how income inequality affects household energy consumption within the European Union amidst the ongoing energy crisis. Using the Gini index and the gender pay gap as indicators of income inequality, the analysis covers the period 2000–2023 across EU member states. Dynamic panel data models reveal that the Gini index negatively impacted final energy consumption per capita as well as energy consumption specifically from gas oil and diesel, while the gender pay gap is associated with less energy consumption in the realms of natural gas and ambient heating. Causality is further explored through recent methodology developed for panel data and Bayesian networks, and the results confirm the causality between energy consumption and income inequality. To address the complex relationship between income inequality and energy consumption, policymakers should implement integrated strategies promoting energy efficiency, clean energy transitions, gender equality, and social safety nets, particularly in light of the energy crisis exacerbated by the Russia–Ukraine conflict.https://www.mdpi.com/1996-1073/18/4/787income inequalitygender pay gapGini indexenergy consumption |
| spellingShingle | Mihaela Simionescu Bogdan Oancea Does Income Inequality Influence Energy Consumption in the European Union? Energies income inequality gender pay gap Gini index energy consumption |
| title | Does Income Inequality Influence Energy Consumption in the European Union? |
| title_full | Does Income Inequality Influence Energy Consumption in the European Union? |
| title_fullStr | Does Income Inequality Influence Energy Consumption in the European Union? |
| title_full_unstemmed | Does Income Inequality Influence Energy Consumption in the European Union? |
| title_short | Does Income Inequality Influence Energy Consumption in the European Union? |
| title_sort | does income inequality influence energy consumption in the european union |
| topic | income inequality gender pay gap Gini index energy consumption |
| url | https://www.mdpi.com/1996-1073/18/4/787 |
| work_keys_str_mv | AT mihaelasimionescu doesincomeinequalityinfluenceenergyconsumptionintheeuropeanunion AT bogdanoancea doesincomeinequalityinfluenceenergyconsumptionintheeuropeanunion |