The Relationship between Income Inequality and Energy Consumption: Evidence from Turkey Cover Image

Gelir Eşitsizliği ve Enerji Tüketimi İlişkisi: Türkiye Örneği
The Relationship between Income Inequality and Energy Consumption: Evidence from Turkey

Author(s): Ayşe Arı
Subject(s): National Economy, Energy and Environmental Studies, Social Theory, Economic development
Published by: Celal Bayar Üniversitesi Sosyal Bilimler Enstitüsü
Keywords: Income Inequality; Energy Consumption; Energy Poverty; Turkey;

Summary/Abstract: It is stated in the literature that there is a bidirectional relationship between income inequality and energy consumption. In this regard, it is argued that the deepening of income inequality can reduce the total energy consumption by restricting the access of the poor to energy. Secondly, it is argued that individuals' having difficulties in obtaining the energy they need will cause problems in their education, health, and therefore business areas and increase income inequality. The aim of this study is to investigate the effect of income inequality on energy consumption in Turkey. For this purpose, the Turkish economy is analyzed by employing the Bayer and Hanck (2013) cointegration test over the period 1989-2018. According to the findings, there is no long-term relationship between income inequality and energy consumption. The causality relationship between the variables is also investigated by employing the test of Hacker and Hatemi (2010). According to the results of the causality test, there is no causal relationship between income inequality and energy consumption. In summary, deterioration in income inequality will not be expected to restrict the poor's access to energy and reduce total energy consumption. In short, it can be said that energy consumption and income inequality are independent of each other.

  • Issue Year: 20/2022
  • Issue No: 02
  • Page Range: 236-244
  • Page Count: 9
  • Language: Turkish