Energy Trilemma and Equity: Balancing Access, Growth, and Sustainability in the Global Transition

Purpose This study aims to investigate the interdependent relationships between energy access (EA), economic growth (GDP), and renewable energy consumption (REC) within the framework of energy justice. It highlights how these dynamics differ across income groups and regions, with a particular focus on inclusive development. Design/methodology/approach A three-equation structural model is estimated using 2SLS, 3SLS, and robust two-step GMM techniques on a panel of 110 countries covering the period 2000–2022. This methodological framework captures the bidirectional feedbacks among EA, GDP, and REC while addressing endogeneity and instrument validity concerns. Findings The results reveal a strong bidirectional relationship between renewable energy and economic growth in middle- and high-income countries. Energy access is found to be a critical driver of poverty reduction and inclusive growth in low-income regions, especially Sub-Saharan Africa. While fossil fuels still play a role in sustaining growth, their adverse environmental impacts highlight the urgency of transitioning towards cleaner and more efficient energy systems. The analysis further uncovers substantial heterogeneity across regions and income levels, underscoring the need for context-specific energy and growth policies. Originality/value This study advances the literature by embedding the concept of energy justice within the empirical analysis of energy–growth interactions, employing a robust econometric framework. It offers new evidence on the heterogeneous effects of energy access and renewable energy adoption on economic growth across different countries and income levels. The findings provide rigorous insights for policymakers, supporting the formulation of strategies that effectively reconcile economic development, environmental sustainability, and equitable access to energy resources.