Toward a green economy: Low carbon transition and income inequality among high-income countries

This research examines the relationship between the green energy transition and income inequality among high-income countries. Using the Environmental Kuznets Curve (EKC) and Income-Pollution nexus frameworks, we introduce a novel ratio to assess the effectiveness of the transition toward a green energy-dependent society, estimated by different techniques that provide robust coefficients for panel data. Our study highlights the significance of the role of income equality in driving the transition to green energy. Our conclusions denote that societies with lower income inequality prioritize renewable energy investments, sustainable practices, and energy access for marginalized communities. According to our estimations, we recommend policymakers to engage marginalized groups, incorporating their concerns for inclusive decision-making in order to generate support for sustainable energy transitions, emphasizing transparency, accountability, and responsiveness to marginalized communities' needs.