Income inequality as a structural barrier to the green energy transition: Evidence from urban archetypes in the Global South

While rapid urbanization in the Global South exacerbates energy access disparities, the mechanisms linking socio-economic stratification to sustainable uptake remain underexplored. This research examines how income inequality influences urban energy access behavior and green technology adoption across three different urban archetypes in Pakistan (Islamabad, Lahore, and Faisalabad). This paper combines econometric and configurational analysis and Structural Equation Modeling (SEM), Logit and Probit model, Generalized Method of Moments (GMM), and Fuzzy Set Qualitative Comparative Analysis (FsQCA) are used to assess the causal processes and equifinal adoption processes. Empirical results demonstrate that income inequality acts as a systemic barrier, significantly lowering both the likelihood of green technology adoption and overall household energy security. SEM and Logit/Probit analyses confirm the ongoing negative impact of inequality, while GMM results support its causal role after accounting for endogeneity. Furthermore, perceptions of government policy exhibit a significant inverse relationship with adoption rates, suggesting that bureaucratic friction and institutional trust deficits actively deter engagement with state incentives. FsQCA reveals that the technology adoption is not driven by isolated variables but emerges from distinct socio-economic configurations, highlighting both resource-abundant (elite-driven) and infrastructure-deficient (necessity-based) adoption pathways. Lastly, the mediation analysis (Sobel test) shows that green technology is a partial mediator which can buffer the negative impact of inequality on the access to energy. Such results argue against homogenous technological solutions, highlighting the need to archetype-specific policy interventions to attend to underlying economic stratification and institutional inefficiency to realize an equitable energy transition.