Work

Energy Inequality and Environmental Transition in the Gulf Cooperation Council Countries: Revisiting the Kuznets Curve

Year: 2025

Type: article

Abstract: This study explores the effect of Energy Inequality (EINQ) on environmental sustainability within the frameworks of the Environmental Kuznets Curve (EKC) and the Load Capacity Curve (LCC), while accounting for technological progress (TECH), financial development (FD), and foreign direct investment (FDI). Using annual data for six Gulf Cooperation Council (GCC) countries from 2005 to 2024, the analysis applies the Method of Moments Quantile Regression (MMQR) to capture heterogeneous effects across the distribution of the Load Capacity Factor (LCF). The results show that energy inequality consistently reduces environmental sustainability, indicating that unequal access to efficient and clean energy services heightens ecological pressure. In contrast, technological innovation and financial development enhance sustainability by improving energy efficiency and supporting green investments. Economic growth exhibits an inverted U-shape, validating the EKC and LCC hypotheses. These findings are especially important for the GCC, where hydrocarbon dependence, uneven access to clean energy, and rapid structural change intensify the environmental consequences of inequality. The study underscores the need for policies that promote equitable energy access, innovation-led diversification, and sustainable financial mechanisms.

Source: Energies

DOI: 10.3390/en18246588

Authors: Hind Alofaysan, Fatma Ahmed Hassan

Institution: Princess Nourah bint Abdulrahman University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Reduced inequalities, Affordable and clean energy, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $3,137