A Panel Analysis of Income Inequality and Energy Use

This paper investigates the relationship between energy consumption and income inequality in an unbalanced panel of 147 countries over the period 1990 - 2014. Using a variety of panel and dynamic panel methods and controlling for other determinants of inequality, such as education, health, investment, etc., I find a large and strong negative relationship between access to energy and income inequality. Moreover, I demonstrate that greater access reduces the share of income enjoyed by the top 20% and increases the share for the bottom 20%. Results are less robust when the sample is divided into regions and economic 'blocs', but the overall results are unchanged