Is income inequality a stumbling block to the global natural gas market?

The potential effect of narrowing income gap on natural gas use in the global dimension has not received much attention; thus, the main research topic of this paper is whether the realization of common prosperity has a significant nonlinear impact on natural gas. To explore this topic, this study first systematically analyzes the theoretical framework in the inequality-gas nexus, and then examines the role of narrowing income gap in influencing gas use based on a global sample dataset. We also explore the asymmetric impacts of income inequality and other influencing factors on gas use. The primary findings suggest that: (i) both income inequality and global gas use show an inverted U-shaped nexus; by implication, as the income gap widens, the global gas use expands, and the use of gas gradually decreases when the income gap peaks. This has been checked by a series of robustness tests. Moreover, we find that (ii) asymmetric impacts of income inequality on global gas use exist in different natural gas conditions. Therefore, some policy suggestions to narrow the income gap, rationalize income distribution, and formulate strategies according to local conditions are proposed.

Automated summary

The main research topic of this paper is to examine the nonlinear impact of common prosperity on natural gas use in the global dimension. The study finds an inverted U-shaped relationship between income inequality and global gas use, suggesting that as the income gap widens, global gas use expands, but gradually decreases when the income gap peaks. Moreover, the study reveals asymmetric impacts of income inequality on global gas use under different natural gas conditions, and proposes policy suggestions to narrow the income gap, rationalize income distribution, and formulate strategies according to local conditions.