The social, economic, and environmental drivers of renewable energy: Is income inequality a threat to renewable energy transition?

Eyuboglu K., ÜZAR U.

Journal of Cleaner Production, vol.490, 2025 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Volume: 490
  • Publication Date: 2025
  • Doi Number: 10.1016/j.jclepro.2025.144780
  • Journal Name: Journal of Cleaner Production
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Business Source Elite, Business Source Premier, CAB Abstracts, Chimica, Communication Abstracts, Compendex, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Keywords: Economic growth, FAARDL, Income inequality, Italy, Renewable energy
  • Karadeniz Technical University Affiliated: Yes

Abstract

This study focuses on the impact of income inequality on renewable energy consumption in Italy from 1970 to 2022, addressing a critical yet under-explored aspect of sustainable development. The analysis employs the advanced Fourier Augmented ARDL model to capture the socio-economic and environmental dynamics that influence renewable energy use, incorporating variables such as income inequality, economic growth, trade openness, and CO2 emissions for a more detailed understanding. The findings reveal that income inequality significantly and negatively affects renewable energy consumption, suggesting that higher inequality may hinder Italy's transition to clean energy. In contrast, economic growth has emerged as a positive driver of renewable energy use, whereas trade openness and CO2 emissions negatively impact renewable energy adoption. These results imply that policies aimed at reducing income inequality could be crucial for enhancing renewable energy consumption. In this context, the study advocates an integrated policy approach that concurrently addresses income inequality reduction and renewable energy promotion to achieve sustainable development goals. By underscoring the importance of harmonizing social and environmental objectives for lasting impacts, this study offers a significant contribution to the literature.