Does energy access matter for achieving inclusive growth? Insight from a global perspective

We examined the role of energy access in promoting inclusive growth, which takes income inequality into account when measuring economic development. Unlike studies that focus separately on economic growth, energy consumption, or inequality, our research explores the intersection of these factors. We specifically emphasize access to electricity, clean cooking fuels and technologies rather than just total energy consumption. Using panel data from 154 countries between 2000 and 2020, we discovered that a 1% increase in access to electricity and clean cooking fuels and technologies is associated with a 1.65% and 0.39% increase in inclusive growth, respectively. These findings are consistent across various methods of analysis, and the relationship is influenced by different employment types: vulnerable (contributing family workers) and non-vulnerable (wage and salary workers). Our results underscore the urgent need for energy policy reforms and investments aimed at improving access to modern, clean, and reliable energy in energy-poor regions. This access is essential for fostering equitable and inclusive economic growth.