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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Main Authors: Mihaela Simionescu, Bogdan Oancea
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Energies
Subjects:
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.
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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