Unveiling global energy inequality through the mismatch between embodied energy and value-added transfer

Abstract

Global trade in embodied energy plays a critical role in shaping patterns of energy access and equity, yet its implications for energy welfare remain insufficiently explored. This study examines the distribution of energy welfare embedded in trade across 141 countries and regions from 2000 to 2019 by analyzing the divergence between embodied energy transfers and the economic value they generate. The results reveal that imbalances in embodied energy trade have significantly reshaped energy access. Developed economies, such as the US and the EU, benefit disproportionately through energy surpluses in trade. In contrast, emerging manufacturing countries, such as China, and resource-dependent economies, like Saudi Arabia, experience substantial embodied energy outflows. The structure of embodied value-added transfers has also undergone a major transformation, shifting from a centralized configuration to a more diversified and decentralized network. Countries such as China and Russia have emerged as dominant exporters of value-added, while the US and the UK have become major importers. These patterns reflect a global asymmetry in energy welfare, with developed economies positioned at the core of “beneficiary zones” by capturing both energy and economic gains through trade, while less developed economies are often situated in “loss zones,” contributing energy-intensive exports without proportional economic compensation. Moreover, the rise of South–South trade has further exacerbated these inequities. The findings provide insights into the global energy welfare distribution and its implications for trade fairness and equity.