Document Type : Research Paper
Authors
1 Department Of Economics, Univeristy of Kurdistan
2 Department Of Economics, University of Kurdistan
Abstract
The literature has studied various factors affecting income inequality and the influence of energy security on the economy, while knowledge is rather limited regarding the linkage between energy security and income inequality. Therefore, in addition to conventional economic and financial aspects, the energy landscape requires a deeper examination of how energy market activities affect income inequality. The contributions of the current study can be summarized as follows: First, we fill the gap in the literature by examining the influence of energy security on income inequality. Second, unlike previous works, we delve into the non-linear impact of energy security on income inequality. Third, we employ a new DPT model to find the threshold variables. In current study, the effect of energy security in four dimensions (availability, accessibility, development capability and acceptability) on income inequality in Middle Eastern countries has been investigated. To achieve this goal, threshold panel regression and data from the period 2000-2021 have been used. The results show that among the four dimensions of energy security, only the acceptability dimension has a negative and significant effect on income inequality, and other energy dimensions do not have a significant effect on income inequality. The threshold level for the Middle East countries is calculated at 42032 dollars per capita. Therefore, governments should focus more on improving the efficiency of energy use. This not only helps to reduce the income gap, but also increases energy security optimally.
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