Socio-Economic Impacts of Urban Energy Policies on CO₂ Emissions: A Systematic Literature Review

In this systematic literature review (SLR), the effects of socio-economic urban energy policies on CO₂ emission levels are discussed. Any energy policy enacted at the city level aimed at mitigating greenhouse gases is considered crucial, as it contributes to emissions reduction and is particularly important for the fastest-growing cities in the developing world. However, these policies are associated with socio-economic impacts that are not easily discernible. The effects of these policies on economic costs and benefits, social equity, public health, and changes in behavior are incorporated and compared in the review. This review synthesizes evidence from 46 peer-reviewed studies published between 2015 and 2024, revealing that most research has concentrated on Asian megacities, while evidence from Africa and Latin America remains limited, indicating a significant geographical imbalance in the literature. However, the evidence base remains geographically imbalanced, with most studies drawn from Asian megacities and very limited representation from Sub-Saharan Africa, Latin America, or Central and Eastern Europe. This imbalance constrains the generalizability of findings and underscores the need for more geographically inclusive research. It is emphasized that although such policies are environmentally beneficial, they initially entail high costs, have implications for social equity, and require changes in behavior. Additionally, harmonization between the environmental dimensions of policy and socio-economic factors is necessary to foster sustainable city development policies. The findings point to the following directions for future research and policy: a) More comprehensive models must be incorporated to examine the variety of socio-economic effects; b) The relative efficiency of different policy mixes across sectors and contexts should be investigated; c) Greater attention should be paid to addressing the role of stakeholder engagement in the construction and implementation of effective and equitable policies. Key information that can be of use to policymakers is offered, ensuring that urban energy policies are developed to maximize benefits that meet the needs of the population while averting conceivable implications.