Clean energy access gap across urban and rural habitations: Do innovation and income level matter?

ALOLA A. A., Akadiri S. S., ALIYEV A., VİOLET UJU A.

Development and Sustainability in Economics and Finance, vol.11, 2026 (Scopus)

Abstract

The prediction that about 68 % of the world population could live in the urban areas by 2050 patents several socio-economic implications. However, it remains unclear and sparsely documented in the literature on whether displaced population (including refugee population) contributes to this socio-economic change. To advance this knowledge, the gap of access to clean energy arising from urbanization and ruralization is considered a major socio-economic implication of rural-to-urban migration. By considering the global economy, this study looks at the low income, lower-middle income, upper-middle income, and high-income groups as classified by the World Bank. Therefore, using econometric approach, the role of refugee population, and other potential factors such as foreign direct investment (FDI), innovation, and economic growth in the gap of clean energy access arising from urbanization and ruralization are examined. Importantly, the result shows that a percent increase in refugee population, FDI, and innovation respectively widens urban-rural clean energy access gap by 0.17, 0.04, and 0.20 percents in the panel of income group. Meanwhile, economic growth offers a relief to potentially reducing clean energy access gap. On specific income groups, urban-rural clean energy access gap is reduced by refugee inflow to high income countries but the effect is opposite in other income groups. FDI, innovation, and economic growth also have heterogeneity effect in each of the income groups. This result posits relevant policy guide for addressing socio-economic challenges associated with domestic and international migrations.