Inequality as an obstacle to sustainable electricity and transport energy use

The Australian state of Western Australia could follow a number of different paths to satisfy its future energy needs with each path meeting different criteria for sustainable development. A number of energy use scenarios were analysed, including the present case of high fossil fuel use, in terms of carbon dioxide emissions, water consumption, and financial impact on households with incomes at different levels. Scenarios had different combinations of electricity generation sources and vehicle type. It was found that health costs from vehicle emissions are a significant cost of energy use for households relative to other costs (e.g., cost of fuel). Because of high income inequality and the effects of vehicle emissions on health, it was found that the most sustainable use of energy for society overall requires households to use energy differently according to their income levels. Low-median income households have the most to gain from overall electric vehicle uptake, but these same households cannot afford to adopt these vehicles. We show that the differential effects of current energy use on households with different income levels is increasing inequality between households, and that inequality both results from, and is a cause of unsustainable energy use. The conclusion is that income inequality is an obstacle to the uptake of electric vehicles, and can therefore be an obstacle to sustainable energy use. •We model sustainable development indicators for household energy use.•Scenarios are compared in terms of water consumption, CO2 emissions and cost.•Important determinant of sustainability is local vehicle pollution.•Energy costs are irrelevant for high-income households but important for low-income.•Inequality is preventing switch to electric vehicles and renewable energy use.