Integrating energy justice and economic realities through insights on energy expenditures, inequality, and renewable energy attitudes – Nature

 

Executive Summary: Energy Justice and the Pursuit of Sustainable Development Goals

This report analyzes the intersection of energy justice, economic realities, and public attitudes toward renewable energy within the European Union, using Lithuania as a case study. The research evaluates household energy expenditures to measure inequality and assesses public readiness for the green transition, providing critical insights for achieving the Sustainable Development Goals (SDGs). The findings reveal a relatively equitable distribution of energy costs for electricity, gas, and heating, which supports progress toward SDG 7 (Affordable and Clean Energy). However, significant economic constraints hinder the widespread adoption of renewable technologies, as evidenced by a general public reluctance to pay higher premiums for green energy. This highlights a critical challenge for SDG 13 (Climate Action) and SDG 10 (Reduced Inequalities), as the transition risks leaving vulnerable populations behind. The report underscores the necessity of targeted policies that enhance the affordability of sustainable energy, address systemic inequalities, and foster an inclusive transition toward a climate-neutral future, thereby aligning national energy strategies with the global 2030 Agenda for Sustainable Development.

Introduction: Aligning Energy Justice with Sustainable Development Goals

The Imperative for an Equitable Energy Transition

The European Union’s commitment to achieving climate neutrality by 2050 is intrinsically linked to the principles of energy justice and the successful implementation of the Sustainable Development Goals. An effective transition requires more than decarbonization; it demands a holistic approach that addresses social equity, protects vulnerable groups, and ensures fair access to energy resources. This aligns directly with several core SDGs:

• SDG 7 (Affordable and Clean Energy): Ensuring universal access to affordable, reliable, and modern energy services is paramount.
• SDG 10 (Reduced Inequalities): The energy transition must not exacerbate existing disparities. Policies must be designed to prevent low-income and marginalized households from bearing a disproportionate share of the costs.
• SDG 13 (Climate Action): Achieving climate goals depends on broad public support, which can only be secured if the transition is perceived as fair and just.

Recent geopolitical and economic crises have exposed vulnerabilities across the EU, emphasizing that without targeted interventions, the green transition could deepen social divides. This research investigates these dynamics in Lithuania, offering insights applicable to other EU member states facing similar challenges in creating a socially just and environmentally sustainable energy future.

Research Objectives and Contribution to the SDG Framework

The primary objectives of this research are to evaluate energy inequality and public attitudes in Lithuania, providing data-driven insights for policies aimed at achieving a just transition. The study contributes to the SDG framework by:

1. Analyzing household energy expenditures on electricity, natural gas, and heating to measure the extent of inequality, directly informing progress on SDG 7 and SDG 10.
2. Investigating public behaviors and preferences regarding renewable energy adoption, energy efficiency, and conservation, which are critical for advancing SDG 12 (Responsible Consumption and Production) and SDG 13.
3. Identifying economic and social barriers that hinder the adoption of sustainable technologies, providing actionable intelligence for designing equitable policies that leave no one behind.

Methodology: Assessing Energy Inequality and Public Engagement

Survey Design and Data Collection

A representative survey of the Lithuanian population was conducted to gather empirical data. The methodology was designed to ensure robust and reliable findings relevant to energy justice and SDG monitoring.

• Survey Instrument: A structured questionnaire collected data on household energy expenditures (electricity, gas, heating) and public attitudes toward renewable energy and conservation.
• Sampling: Stratified probability sampling was used to survey 1,000 respondents, ensuring proportional representation by age, gender, and geographic location (urban vs. rural). This approach enhances the validity of findings concerning SDG 10 by capturing diverse demographic perspectives.
• Data Collection: Direct, in-person interviews were conducted in November 2023.

Analytical Framework for Measuring Inequality

To quantify the distribution of energy expenditures, the study employed Lorenz curves and the Gini coefficient. This quantitative approach provides a clear measure of inequality, a key indicator for SDG 10.

• Lorenz Curve: This graphical representation plots the cumulative share of total energy expenditure against the cumulative share of households, illustrating the degree of deviation from a perfectly equal distribution.
• Gini Coefficient: Calculated from the Lorenz curve, this metric provides a single value representing the level of inequality, where 0 signifies perfect equality and 1 signifies perfect inequality. This allows for a standardized assessment of how equitably energy costs are distributed across the population.

Findings Part 1: Analysis of Household Energy Expenditure and Inequality

Distribution of Energy Costs and Implications for SDG 7 and SDG 10

The analysis of household energy expenditures for electricity, natural gas, and heating reveals a distribution that, on the surface, appears relatively equitable. This suggests that foundational access to energy is widespread, a positive indicator for SDG 7 (Affordable and Clean Energy). However, the uniformity in spending does not preclude the existence of energy poverty, where low-income households may allocate a disproportionately high share of their income to energy, a critical concern for SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).

Quantifying Energy Inequality: Gini Coefficient Results

The Gini coefficients calculated for different energy expenditures indicate low levels of inequality in spending among the surveyed households. This suggests that policies promoting price stability or subsidies may be effective in ensuring broad access.

• Electricity Expenses: The Gini coefficient was 12.82%, indicating a relatively low level of inequality in how these costs are distributed.
• Natural Gas Expenditures: The Gini coefficient was 8.83%, suggesting a very even distribution of costs among households that use natural gas.
• Heating Costs: The Gini coefficient was 14.92%, which, while slightly higher, still reflects a low level of inequality in annual heating expenses.

While these low coefficients are positive, they measure expenditure inequality, not the overall energy burden. A household spending the same amount as a wealthier counterpart may still face significant financial hardship, a nuance critical for equitable policymaking.

Findings Part 2: Public Attitudes on Renewable Energy and Climate Action

Willingness to Pay and its Impact on SDG 7 (Affordable and Clean Energy)

Public sentiment reveals a significant barrier to accelerating the transition to clean energy. A vast majority of respondents (75.9%) are unwilling to pay more for electricity from renewable sources. This reluctance underscores the “affordability” component of SDG 7 and highlights the economic constraints facing households. Only a small fraction of the population is willing to accept modest price increases, indicating that policy solutions must focus on making clean energy economically competitive without placing additional burdens on consumers.

Behavioral Patterns and SDG 12 (Responsible Consumption)

The survey explored behaviors related to sustainable consumption, providing insights into public alignment with SDG 12 (Responsible Consumption and Production).

• Energy Efficiency: An overwhelming majority (84.8%) prefer energy-efficient appliances, and 90% use energy-saving light bulbs, demonstrating a strong inclination toward choices with clear long-term financial benefits.
• Consumption Reduction: There is significant resistance to reducing energy consumption, with 61.3% unwilling to alter their habits (e.g., lowering home temperatures). This suggests that voluntary behavioral change is a major challenge.
• Resource Conservation: A high majority (81.9%) report conserving resources like water and heat, and 86.4% actively sort waste, indicating strong engagement in established conservation practices.

Barriers to Adopting Sustainable Technologies

While there is strong interest in renewable energy technologies for homes (73.7%) and a desire to drive low-emission vehicles (68.3%), adoption remains low. The primary barrier is the high upfront cost. This gap between aspiration and reality is a critical hurdle for achieving SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action), as it slows the decarbonization of housing and transport sectors.

Discussion: Bridging the Gap Between Economic Realities and SDG Ambitions

The Economic-Environmental Tension in Achieving SDG 13

The findings reveal a fundamental tension between the public’s environmental aspirations and their economic realities. While support for sustainability is high in principle, the willingness to bear personal costs is low. This is a major challenge for SDG 13 (Climate Action), as it suggests that policies relying on consumer premiums for green energy or voluntary lifestyle changes will face significant resistance. The preference for energy-efficient products, which offer tangible financial returns, over paying more for renewable energy, where benefits are societal and diffuse, indicates that economic incentives are a powerful driver of pro-environmental behavior.

Policy Implications for an Inclusive Transition

To ensure the energy transition is just and effective, policies must be designed to align with public economic sensitivities and advance the SDGs. The low Gini coefficients for energy costs suggest that current pricing structures are relatively equitable, but this masks the underlying issue of energy burden on low-income households. Therefore, advancing SDG 10 (Reduced Inequalities) requires moving beyond expenditure analysis to address affordability. Policies should focus on reducing the upfront costs of renewable technologies and energy efficiency upgrades through targeted subsidies, grants, and financing mechanisms, particularly for vulnerable populations.

Conclusion and Recommendations for Advancing the 2030 Agenda

Summary of Key Findings in the SDG Context

This research confirms that while Lithuania has achieved a relatively equitable distribution of basic energy costs, significant challenges remain in aligning its energy transition with the Sustainable Development Goals. The primary obstacle is the economic barrier to adopting renewable energy and making substantial consumption changes. This disconnect between green ambitions and financial realities threatens to slow progress toward SDG 7, SDG 10, SDG 12, and SDG 13. An equitable transition requires addressing not just expenditure inequality but also the energy burden, access to technology, and the affordability of sustainable choices.

Limitations and Avenues for Future Research

The study’s limitations include its reliance on self-reported data and the use of expenditure-based Gini coefficients, which may not fully capture the energy burden on low-income households. Future research should adopt a multidimensional approach to energy inequality, integrating income-based analysis, regional disparities, and energy service quality to provide a more comprehensive picture for policymakers. Such research would further enhance the monitoring and achievement of the SDGs.

Strategic Recommendations

To foster a just and inclusive energy transition that advances the 2030 Agenda, the following actions are recommended:

1. Develop Targeted Financial Incentives: Implement subsidies, tax credits, or grants to lower the upfront cost of renewable energy technologies and energy-efficient appliances, with a focus on low-income households to support SDG 1 and SDG 10.
2. Promote Community-Based Renewable Energy: Foster energy communities to allow citizens to collectively invest in and benefit from renewable energy projects, enhancing local support and ensuring a more equitable distribution of benefits in line with SDG 7 and SDG 11.
3. Launch Public Education Campaigns: Design campaigns that clearly articulate the long-term financial and environmental benefits of sustainable energy choices, addressing misconceptions and bridging the gap between awareness and action to drive progress on SDG 12 and SDG 13.
4. Integrate Energy Justice into All Climate Policies: Ensure that all climate-related legislation is assessed for its impact on vulnerable populations, making equity a core criterion for policy design and implementation.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on energy justice and economic realities in Lithuania connects to several Sustainable Development Goals (SDGs) by exploring the intersection of energy affordability, inequality, climate action, and sustainable consumption. The primary SDGs addressed are:

• SDG 7: Affordable and Clean Energy: This is the most central SDG to the article. The research directly investigates household expenditures on electricity, natural gas, and heating to assess energy affordability and access. It also extensively analyzes public attitudes, willingness to adopt, and barriers to renewable energy, which are core components of ensuring access to clean energy for all.
• SDG 10: Reduced Inequalities: The article is framed around the concepts of “energy justice” and “energy inequality.” It analyzes how energy costs and the benefits of the green transition are distributed across different socio-economic groups. The study explicitly aims to identify disparities and protect vulnerable groups, mentioning that “marginalized groups, including low-income households, bear a disproportionate share of energy burdens.” The use of the Gini coefficient to measure expenditure distribution is a direct attempt to quantify and address inequality.
• SDG 13: Climate Action: The entire study is contextualized by the “European Union’s pursuit of climate neutrality by 2050.” It examines how energy inequality and public attitudes can either support or hinder the transition to a climate-neutral society. The article discusses the need to integrate equity into climate policies and foster public commitment to climate objectives, such as reducing greenhouse gas emissions.
• SDG 1: No Poverty: The article touches upon this goal by discussing “energy poverty,” a condition where households are unable to afford adequate energy services. It analyzes the “energy burden”—the proportion of income spent on energy—and highlights how high energy costs can deepen economic vulnerabilities for low-income households, thereby linking energy access directly to poverty alleviation.
• SDG 12: Responsible Consumption and Production: This goal is addressed through the survey’s investigation of public behaviors and attitudes toward sustainable practices. The article reports on consumer preferences for energy-efficient appliances, the use of energy-saving light bulbs, resource conservation (water, heating, electricity), and waste sorting, all of which are key elements of promoting sustainable consumption patterns.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus, several specific targets within the identified SDGs are relevant:

1. SDG 7: Affordable and Clean Energy
   • Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The article directly addresses this by analyzing household expenditures on electricity, gas, and heating to evaluate affordability. It discusses how “economic constraints” and the “financial burden that energy expenses impose on households” are critical aspects of energy access.
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix. This target is central to the section analyzing public attitudes. The research investigates the “willingness to adopt renewable technologies” and identifies barriers, such as the public’s reluctance “to pay premiums for renewable energy,” which directly impacts the potential for increasing the share of renewables.
   • Target 7.3: Double the global rate of improvement in energy efficiency. The survey findings that an “overwhelming majority (84.8%) prefer energy-efficient options” when purchasing appliances and that “90% are aligned with energy-efficient practices” like using saving light bulbs directly relate to this target.
2. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote the social, economic and political inclusion of all. The article’s emphasis on “energy justice” aims for the “meaningful inclusion of all societal groups in decision-making processes” and seeks to prevent the energy transition from disproportionately burdening “marginalized populations.”
   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome. The article calls for “targeted policies to… address systemic inequalities, and foster a fair and inclusive transition.” Its use of the Gini coefficient to analyze expenditure distribution is a method to measure and ultimately reduce inequalities of outcome in energy access.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The research is framed by the EU’s goal of “climate neutrality by 2050” and argues for “embedding equity into climate policies” to ensure a successful and just transition, which is a form of integrating social measures into climate strategies.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation. The article highlights a gap between public support for green energy and willingness to act, suggesting the need for “educational campaigns aimed at increasing public awareness” and fostering a “stronger public commitment to climate objectives.”
4. SDG 1: No Poverty
   • Target 1.4: Ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services. The article’s discussion of “energy poverty” and the “disproportionate share of energy burdens” on low-income households directly relates to ensuring access to a basic service (energy) and mitigating economic vulnerability.
5. SDG 12: Responsible Consumption and Production
   • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling and reuse. The survey finding that a “strong majority (86.4%) of respondents actively sort their waste” is a direct measure of public engagement in recycling, which contributes to this target.
   • Target 12.8: Ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles. The article’s conclusion that policymakers must bridge the “gap between environmental awareness and actionable commitment” speaks directly to the need for better information and awareness to promote sustainable lifestyles.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several quantitative and qualitative indicators that can be used to measure progress towards the identified targets:

1. For SDG 7 (Affordable and Clean Energy):
   • Household expenditure on energy: The survey collects specific data on monthly spending for electricity and natural gas, and annual spending on heating. This serves as a direct indicator of energy costs.
   • Willingness to pay for renewable energy: The survey quantifies the percentage of the population willing to pay a premium for green energy (e.g., “19.6% would agree to pay up to 5% more”). This indicates the social and economic feasibility of renewable energy expansion.
   • Adoption rate of energy-efficient technologies: The article provides percentages for the preference for energy-efficient appliances (84.8%) and the use of energy-saving light bulbs (90%), which are direct indicators of energy efficiency improvements at the household level.
2. For SDG 10 (Reduced Inequalities):
   • Gini coefficient of energy expenditure: The study explicitly calculates the Gini coefficient for electricity (12.82%), natural gas (8.83%), and heating (14.92%) expenditures. This is a direct statistical measure of inequality in the distribution of energy costs.
   • Energy burden on households: The article analyzes the “proportion of respondents’ income allocated to taxes payable for electricity, gas, and heating,” noting it does not exceed 27%. This is a key indicator of affordability and inequality, especially for low-income groups.
3. For SDG 13 (Climate Action):
   • Public willingness to reduce energy consumption: The survey measures the percentage of people unwilling (61.3%) or willing (32.1% for a slight reduction) to reduce their energy use to combat climate change, indicating public commitment to behavioral change.
   • Public interest in renewable energy adoption: The finding that “73.7% of respondents expressed interest” in using renewable energy sources in their homes indicates the level of public readiness for climate action technologies.
4. For SDG 12 (Responsible Consumption and Production):
   • Rate of resource conservation: The survey finds that 81.9% of respondents report conserving resources like water, heating, and electricity, providing a measure of sustainable household practices.
   • Waste sorting rate: The finding that 86.4% of respondents “actively sort their waste” serves as a direct indicator of public participation in recycling.

4. Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators Identified in the Article
SDG 7: Affordable and Clean Energy	7.1: Ensure universal access to affordable, reliable and modern energy services. 7.2: Increase substantially the share of renewable energy. 7.3: Double the global rate of improvement in energy efficiency.	– Household expenditures on electricity, natural gas, and heating. – Percentage of respondents willing to pay a premium for renewable energy (23.9% willing to pay more). – Percentage of respondents preferring energy-efficient appliances (84.8%). – Percentage of respondents using energy-saving light bulbs (90%).
SDG 10: Reduced Inequalities	10.2: Empower and promote the social, economic and political inclusion of all. 10.3: Ensure equal opportunity and reduce inequalities of outcome.	– Gini coefficient of household energy expenditures (calculated as 12.82% for electricity, 8.83% for gas, 14.92% for heating). – Analysis of disproportionate energy burdens on low-income and marginalized groups. – Share of household income allocated to energy expenses (not exceeding 27%).
SDG 13: Climate Action	13.2: Integrate climate change measures into national policies, strategies and planning. 13.3: Improve education, awareness-raising and human capacity on climate change mitigation.	– Public willingness to reduce household energy consumption to combat climate change (61.3% not willing). – Public interest in using renewable energy sources at home (73.7% expressed interest). – Assessment of public understanding and commitment to climate objectives.
SDG 1: No Poverty	1.4: Ensure that all, in particular the poor and vulnerable, have access to basic services and economic resources.	– Analysis of “energy poverty” and the “energy burden” on households. – Proportion of income spent on energy, highlighting affordability challenges for vulnerable groups.
SDG 12: Responsible Consumption and Production	12.5: Substantially reduce waste generation through recycling. 12.8: Ensure people have relevant information and awareness for sustainable lifestyles.	– Percentage of respondents who actively sort waste (86.4%). – Percentage of respondents who conserve resources like water, heating, and electricity (81.9%). – Analysis of the gap between environmental awareness and actionable commitment.

Source: nature.com