Sustainability Uncertainty and Energy Poverty Inequality in Major Asian Economies: Implications for Sustainable Development Goals 7: Wavelet Coherence Approach

ABSTRACT

Energy poverty inequality remains a major barrier to achieving Sustainable Development Goal 7 (SDG 7), particularly in developing Asian economies. This study examines the dynamics of energy poverty inequality over the period 2002–2022, with a focus on urban–rural disparities in electricity access and clean cooking fuel access. Energy poverty inequality is measured using the Theil Index, while wavelet multivariate coherence analysis is employed to explore the time‐varying relationship between sustainability uncertainty (SU) and energy inequality. Clean cooking fuel inequality is higher than electricity inequality. Pakistan exhibits the highest internal inequality, with clean fuel Theil values exceeding 0.30 in the early 2000s and remaining above 0.15 by 2022, indicating slow convergence. India records a sharp decline in clean fuel inequality after 2010, with Theil values falling by more than 60%, reflecting the impact of targeted policies, though residual rural gaps persist. In contrast, China and Vietnam maintain consistently low inequality levels, with electricity access inequality approaching zero and clean fuel inequality falling below 0.05 by the end of the sample period. Between‐country decomposition reveals that rural energy access accounts for over two‐thirds of regional energy poverty inequality, highlighting rural transition pathways as the dominant driver of disparities in Asia. Wavelet coherence results show persistently high coherence (often above 0.70) between SU and energy poverty inequality. Phase analysis indicates SU frequently leads inequality during periods of economic stress, while sustained energy inequality amplifies long‐term sustainability risks. These findings emphasize that reducing energy poverty inequality is essential for achieving SDG 7.