Income Inequality, Democracy Schools, Renewable Energy, and Life Satisfaction in Turkey: A Cumulative Causation Approach to Development Economics

Abstract

Income inequality constitutes important constraints for social equality and economic sustainability. Therefore, it is important to investigate the factors that reduce income inequality. In this study, the impact of democratic participation, renewable energy employment, public infrastructure investments, and life satisfaction indicators on income inequality in 26 regions of Türkiye for the period 2010-2024 is investigated with two different methods (Driscoll-Kraay regression and Super SBM). The insights from the regression analysis indicate that increased electoral participation, renewable energy employment, infrastructure investments and life satisfaction support socioeconomic development by reducing income inequality, with priority in rural areas. According to the SBM analysis, the total factor productivity level in urban areas is higher than in rural areas. These results emphasize the need for region-specific policies focusing on democratization, renewable energy, and infrastructure development, offering actionable insights for addressing income inequality and advancing sustainable development in Türkiye.