Income inequality-renewable energy demand nexus in emerging Asian economies: does asymmetry matter?

Several efforts have been made to explore the income inequality influence on environmental degradation, but the query regarding the nexus of income inequality and renewable energy consumption (REC) is still unanswered. This vacuum in existing literature has raised the need to inspect the relationship between income inequality and REC. Thus, this study purposes to investigate the asymmetric effect of income inequality on REC for emerging Asian economies over the period 1990-2019 by adopting the nonlinear autoregressive distributed lag (NARDL) approach. The panel-wise long-run results infer that positive shock in income inequality exerts a significant negative effect on REC, while negative shock in income inequality has an insignificant effect on REC. Likewise, economy-wise long-run findings reveal that a positive shock in income inequality brings a negative and statistically significant influence on REC in the case of China, India, and Iran, while a negative shock in income inequality brings a positive influence on REC only in case of Russia.