The relationship between income ınequality and energy consumption: a pareto optimal approach
Künye
Nar, M. (2021). The Relationship Between Income Inequality and Energy Consumption: A Pareto Optimal Approach. The Journal of Asian Finance, Economics and Business, 8(4), 613-624.Özet
This paper analyzes the relationship between income distribution and energy consumption from a Pareto optimal approach. For this purpose,
the causality relationship between electricity consumption per capita (kWh) with respect to country groups and energy consumption per
capita (kg of oil equivalent) along with gross domestic product per capita was analyzed. In addition to this purpose, a Pareto analysis was
conducted to determine the countries with the highest per capita national income, how much of the world total energy they consume, and
whether the law of power in the energy and electricity markets exists. Finally, the impact of official development assistance provided to
low-income countries by high-income countries on the low-income countries’ electricity and energy consumption was analyzed. In other
words, it was questioned whether pareto redistribution policies serve the purpose or not. The Engle-Granger causality approach was used in
the analysis of the causality relationship between variables. Our analysis indicated that, first, the energy data of the country groups may be
inadequate in revealing income inequalities. Second, the existence of Pareto law of power and global income inequality can be explained
based on energy data. Finally, Pareto optimal redistribution policies to eliminate income inequality remain inadequate in practice.