Barriers to energy sustainability: A case study from Ukraine

Abstract

Sustainability goals imply not only economic and environmental components, but also a social one. The energy business around the world is profitable and economically viable, but it does not always bring appropriate benefits to a society. Besides, some governments, instead of protecting the interests of the population, turn a blind eye and generate injustice in relation to some parts of society in collaboration with energy companies. This paper examines one of the cases when the authorities pursue an unfair policy and contribute to the growth of inequality in society through regulating the natural gas tariffs. The paper considers a case of natural gas consumption and its unfair taxation by the Ukrainian government, which the authors called “gas tax”. A statistical analysis of this case revealed that honest middle-income taxpayers (middle class) are at the most disadvantageous position because they have to pay for utilities at the highest price. The paper also discusses a number of challenges and ethical issues related to the payment of gas tax. All these challenges should become arguments for revising the gas tax, making it less painful for the people and fair.