Browsing by Author "Pinto, Guilherme Fonseca"
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- “Leaving No One Behind”: Energy Transition and InequalityPublication . Pinto, Guilherme Fonseca; Afonso, Tiago Jorge LopesEnergy transition has the potential to pressure inequalities, primarily due to higher initial costs of clean and renewable energy and disparities between developing and developed countries. This study addresses the central question: How does the energy transition affect income and wealth inequality, considering the countries’ stages of development? The aim is to analyse the determinants of income and wealth inequality across different levels of development. A threshold model approach was employed, utilising variables that proxy economic development, life expectancy, unemployment, globalisation, and institutional factors across 75 countries from 2002 to 2021. The findings indicate that the effects of energy transition and control variables on inequality vary by development level, suggesting the need for a non-linear approach. Below a certain threshold of economic development, the energy transition exacerbates income and wealth inequality, while it has an attenuating effect in countries above this threshold. Interestingly, economic development shows an inverse relationship with inequality, challenging the Kuznets Curve hypothesis. Developed countries are encouraged to promote initiatives that support developing countries in their transition processes, assisting low-income groups in managing the costs of clean and renewable energy, and accelerating their economic growth to the point where the energy transition does not accentuate inequalities, ensuring no one is left behind.