Seventeenth International Conference on Climate Change: Impacts & Responses

Abstract

The Sustainable Development Goals (SDGs) set by the UN Agenda 2030 have prompted African countries to strive for environmental quality and equitable energy access. However, few studies have explored the relationship between income inequality dynamics, energy equity, and environmental quality. This study aims to fill this gap by assessing the interdependencies between income inequality dynamics and energy equity in relation to environmental quality in Africa. Using a panel dataset covering 41 African countries from 2008 to 2019, we employ the Driscoll-Kraay standard errors and two-step system GMM estimation method. Our study investigates the unconditional and conditional effects of energy equity and income inequality on environmental quality. Our findings reveal the following: (1) energy equity fosters environmental quality, whereas income inequality detracts from it, and (2) income inequality nullifies the positive impact of energy equity on environmental quality. These findings remain consistent when we use ecological footprint as an alternative measure of environmental quality. We conclude that addressing income inequality is essential for ensuring that energy equity improves environmental quality. Policymakers should prioritize energy equity initiatives to achieve development goals.