Global redistribution of income and household energy footprints: a computational thought experiment
Open accessAbstract
Non-technical summary Global income inequality and energy consumption inequality are related. High-income households consume more energy than low-income ones, and for different purposes. Here, we explore the global household energy consumption implications of global income redistribution. We show that global income inequality shapes not only inequalities of energy consumption but the quantity and composition of overall energy demand. Our results call for the inclusion of income distribution into energy system models, as well as into energy and climate policy. Technical summary Despite a rapidly growing number of studies on the relationship between inequality and energy, there is little research estimating the effect of income redistribution on energy demand. We contribute to this debate by proposing a simple but granular and data-driven model of the global income distribution and of global household energy consumption. We isolate the effect of income distribution on household energy consumption and move beyond the assumption of aggregate income–energy elasticities. First, we model expenditure as a function of income. Second, we determine budget shares of expenditure for a variety of products and services by employing product-granular income elasticities of demand. Subsequently, we apply consumption-based final energy intensities to product and services to obtain energy footprint accounts. Testing variants of the global income distribution, we find that the ‘energy costs’ of equity are small. Equitable and inequitable distributions of income, however, entail distinct structural change in energy system terms. In an equitable world, fewer people live in energy poverty and more energy is consumed for subsistence and necessities, instead of luxury and transport. Social media summary Equality in global income shifts household energy footprints towards subsistence, while inequality shifts them towards transport and luxury.
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Even if a progressively financed UBI would not result in a net economy-wide increase in income and only redistributes from richer to poorer people, it could lead to an increase in consumption and associated emissions.
“Even if a progressively financed UBI would not result in a net, economy-wide increase in income and only redistributes from richer to poorer peo ple, it could lead to an increase in consumption and associated emissions as shown in recent modelling of a hypothetical reduction of global inequality (Oswald et al., 2021).”
From Sustainable welfare: How do universal basic income and universal basic services compare? (2021) · cites this paper as Oswald et al., 2021
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Net-zero emissions energy systems
Davis, S. J., Lewis, N. S., Shaner, M., Aggarwal, S., Arent, D., Azevedo, I. L., Benson, S. M., Bradley, T., Brouwer, J., Chiang, Y.-M., et al. (2018) · Science · doi:10.1126/science.aas9793 · Cited by 2,391 · see citing works
Grubler, A., Wilson, C., Bento, N., Boza-Kiss, B., Krey, V., McCollum, D. L., Rao, N. D., Riahi, K., Rogelj, J., De Stercke, S., et al. (2018) · Nature Energy · doi:10.1038/s41560-018-0172-6 · Cited by 1,178 · see citing works
Happiness, income satiation and turning points around the world
Jebb, A. T., Tay, L., Diener, E., & Oishi, S. (2018) · Nature Human Behaviour · doi:10.1038/s41562-017-0277-0 · Cited by 439 · cited 1× · see citing works
“…simplification, the gain in well-being indicators (life expectancy, life satisfaction, etc.) is relatively small after roughly $15,000 purchasing power parity (PPP) per capita – a level only modestly larger than the global average (although maxima are achieved at higher levels; Jebb et al., 2018).”
BackgroundGlobal exposure and vulnerability to multi-sector development and climate change hotspots
Byers, E., Gidden, M., Leclère, D., Balkovic, J., Burek, P., Ebi, K., Greve, P., Grey, D., Havlik, P., Hillers, A., et al. (2018) · Environmental Research Letters · doi:10.1088/1748-9326/aabf45 · Cited by 295 · see citing works
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Sustainable welfare: How do universal basic income and universal basic services compare?
Büchs, M. (2021) · Ecological Economics · doi:10.1016/j.ecolecon.2021.107152 · Cited by 127 · see citing works
- Authors
- Oswald, Y., Steinberger, J. K., Ivanova, D., & Millward-Hopkins, J.
- Affiliations
- University of Leeds (GB)
- Corresponding author
- Oswald, Y.
- Venue
- Global Sustainability
- Publisher
- Cambridge University Press (CUP)
- Published
- 2021
- Volume
- 4
- ISSN
- 2059-4798 (ISSN-L)
- OpenAlex
- W3123601655
- Cited by
- 82
- References
- 4
- Citations by year
- 2026: 12 · 2025: 18 · 2024: 15 · 2023: 16 · 2022: 13 · 2021: 8
- FWCI
- 2.44
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Global Sustainability (publishedVersion, cc-by-nc-sa)
- SERVAL (Université de Lausanne) (publishedVersion, cc-by-nc-nd)
- IRIS (submittedVersion, cc-by-nc-nd)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
- Funders
- Leverhulme Trust
- Engineering and Physical Sciences Research Council (EP/R035288/1)
- Topics
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
- Physical Sciences › Environmental Science › Environmental Engineering › Environmental Impact and Sustainability
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Energy, Environment, Economic Growth
- Keywords
- household energy consumption, income inequality, energy footprint, energy poverty, energy system modelling, climate and energy policy, transportation energy use
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