Analysing Gordon’s trade-off by adapting Thurow’s approach of pure public good to the German energy sector

Background We analyse Gordon’s trade-off by adapting Thurow’s approach of pure public good using the example of the German energy sector which is in a transition process to a low-carbon sustainable energy system (Energiewende). The income distribution and the energy expenditures of households are interpreted as public goods. Their distribution is measured with the Atkinson index, which determines how the quality of life, as measured in income and energy expenditures, is distributed among society.