Income/gender inequality and energy use in the European Union

Abstract

In the context of energy crisis, the impact of household energy consumption on income and gender inequality in the European Union is a new challenge. The main aim of this study is related to the evaluation of the impact of energy consumption on Gini index as a measure of income inequality and on gender pay gap as a measure of gender inequality in the European Union. The baseline results for the period 2000–2021 based on dynamic panel data models indicate that more final energy consumption in households per capita reduced Gini index, but increased gender pay gap. For checking robustness of the results, a shorter period was considered (2010–2021) and the impact of final energy consumption on Gini index became positive. If various types of energy sources (natural gas, gas oil, gas diesel) and various purposes are considered for energy consumption (energy for heat, energy for ambiental heat) the evidence for the impact on Gini index and gender pay gap is mixed in the period 2010–2021. Besides these results based on dynamic panel data models, this study brings as novelty for literature the analysis of causal relationships between various types of energy consumption and income/gender inequality using a specific panel causality test that allow heterogenous parameters and Bayesian networks. The policy recommendations based on these results refer to the reduction of energy consumption in times of energy crisis to ensure less income and gender inequality.