Looking back to look forward: Reflections from networked research on energy poverty

Energy poverty is a far-reaching concept that intrinsically bridges numerous fields of study, ranging from engineering to anthropology and medical science to social psychology. The profound implications of energy poverty on the quality of life globally have also led to a wide range of metrics and policies aimed at measuring it and alleviating it, albeit with limited success. Using a mixed methods approach, our network has conducted research to advance knowledge and interpretations of energy poverty and boost scientific outputs' capacity to shape knowledge-based policies. In this article, we critically review this extensive research endeavor, as well as its results. We build on the conceptual, methodological, and policy dimensions of energy poverty research to set up pathways toward a new, interdisciplinary research and policy agenda on energy poverty mitigation better equipped to provide meaningful answers to the challenges posed by the current ongoing energy crisis.

Rural Specificity as a Factor Influencing Energy Poverty in European Union Countries

This study focuses on the empirical verification of the influence of rural specificity on energy poverty across European Union countries, in the period 2010–2020. The research aimed at specifying the role of the agricultural character of a country, as well as economic disparities between rural and urban areas, in inducing problems of energy affordability. Based on the literature consensus about the most important determinants of energy poverty, namely income, energy prices, energy productivity, quality of dwellings, and climate conditions, a standard model was constructed concerning the role of the rural character of an economy, with its traditional features such as agricultural employment, and indices of rural–urban divide, in terms of median income and material poverty. Models for panel data with fixed effects were estimated. The results indicate agricultural employment as a factor increasing the subjective energy poverty of households. However, the scale of rural settlement cannot be specified as a factor determining energy poverty, neither concerning energy consumption nor self-reported difficulties. This suggests that only the traditional agricultural character of rural areas negatively influences energy poverty. The processes of gentrification of rural areas observable in many EU countries changes the typical pattern of the identification of villagers with the most excluded group.

Effectiveness of an Energy-Counseling Intervention in Reducing Energy Poverty: Evidence from a Quasi-Experimental Study in a Southern European City

Energy poverty is a serious social problem with well-known adverse health consequences. This problem has been addressed mainly through improvements in the energy efficiency of housing. Still, little is known about the effects of information-based measures on energy poverty and their impacts on health. A quasi-experimental study was implemented to assess the effectiveness of an energy-counseling home visit intervention targeting the vulnerable population in a southern European city, Barcelona, in alleviating energy poverty and improving health. The intervention had beneficial impacts on keeping homes at an adequate indoor temperature and reducing primary care visits. No effects were found on self-perceived health or self-reported anxiety and depression. After the intervention, participants reported a decrease in arrears on utility bills, but less pronounced than in the comparison group. In conclusion, the study showed that information-based measures lead to psychosocial gains and reduced healthcare use. Nevertheless, the impact of these measures could be enhanced by combining them with policies and programmes that address the structural determinants of energy poverty.

The effects of energy poverty on economic growth: a panel data analysis for BRICS countries

Energy consumption is an indispensable element for the purpose of achieving economic growth. Clean energy sources must be put into use to achieve a sustainable environment. The aim of this study is to investigate the relationship among growth, energy consumption, employment, education, and inflation with PVAR, FMOLS, and DOLS analysis in BRICS countries. The study that covers the 2001-2018 observation period included growth as the dependent variable in the equation. The only common result of the three coefficient estimates is that there is no significant relationship between education and growth. However, the increase in income has a decreasing effect on the level of education. The direction of causality between the two variables is from growth to education. Contrary to the PVAR estimate, according to FMOLS and DOLS, energy consumption and employment have a positive contribution towards growth. However, according to PVAR regression results, income growth has a positive effect on employment. Moreover, a unidirectional causal relation from energy consumption to growth and a bidirectional relation between growth and employment have been determined. This one-way relationship between energy consumption and GDP depicts that the growth hypothesis is valid. Furthermore, an energy poverty problem does not exist in BRICS countries. According to FMOLS, DOLS, and PVAR forecasts, the relationship between inflation and growth is complex. In accordance with PVAR estimates, the increase in growth reduces inflation, and the causality from growth to inflation also supports the PVAR results. According to the outcome of the research, energy poverty is not observed in the panel countries. It would be wise for BRICS countries to increase their energy consumption and employment levels in order to increase growth. However, considering the air pollution caused by fossil fuel consumption, it is key that they employ renewable energy sources.

Expenditure-Based Indicators of Energy Poverty—An Analysis of Income and Expenditure Elasticities

Energy poverty is high up on national and European Union policy agendas. A number of possible indicators to measure the issue have been identified in the literature, but comparable data with European coverage is scarce. The EU Commission thus proposes four independent indicators on the “EU Energy Poverty Observatory” based on self-reported items from the pan-European surveys on income and living conditions (SILC) and household budgets (HBS). It is of increasing public interest to analyse social impacts of energy policies, and quantify energy poverty indicators also from modelling. This paper first shortly outlines how the expenditure-based indicators using HBS micro data may be directly linked to existing macroeconomic models through their defining variables (energy expenditure and income). As endogenous modelling based on micro data is difficult, the link may be country-specific elasticities. The main contribution of the paper is a systematic in-depth sensitivity analysis of the two indicators to changes in income and energy expenditure following varying patterns in the underlying distributions of the micro data. The results may be used by future soft links to models. The results display sometimes counterintuitive effects. We find that whether these indicators increase/decrease after a change of income or energy expenditure largely depends on the specific country-wise income and energy expenditure distribution between households on a micro-level. Due to their definition, the examined indicators are especially sensitive, when income changes alter the indicator threshold values, which in these cases are the median values in underlying distributions. We discuss these findings and relate them to several indicator shortcomings and potential remedies through changes in indicator definition.

Impact of COVID-19 on the Level of Energy Poverty in Poland

The main objective of the paper is to determine the impact of the COVID-19 pandemic on the level of energy poverty in Poland. In order to achieve such a goal, the first part of the article presents the definition of energy poverty and the nature of its measures, as well as the determinants and policies of the state addressing the issue of energy poverty mitigation. In the second part of the paper, the results of research into the level of energy poverty are analyzed and the variables affecting energy poverty in Poland during the pandemic are determined. It was established on the basis of these results that the present pandemic contributed to the aggravation of financial difficulties in Polish households with regard to financing expenditure on energy carriers. It was found that COVID-19 had a negative impact on the average disposable income of Polish households, which, with the increase in prices and expenditure on energy carriers, led to an increase in the proportion of disposable income spent on energy carriers. The most affected have been the poorest households. Moreover, the long downward trend in the level of energy poverty in Poland has reversed. Thus, it has been proved that COVID-19 has contributed to the intensification of energy poverty in Poland. The theoretical and empirical considerations contained in this paper may be a valuable source of scientific data on the impact of the pandemic on household energy poverty, while public institutions may find them a source of useful information, helping to create effective instruments to mitigate energy poverty in the Polish economy.

Future Design Approaches for Energy Poverty: Users Profiling and Services for No-Vulnerable Condition

Analyzing data from the Energy Poverty Observatory in Europe, it emerges that more than 50 million households in the EU live in energy poverty (people that cannot heat their homes during winter; cannot make their homes comfortable during the summer; pay their energy bills late). Research studies realized in the last 20 years highlight that making energy demand efficient and effective is the more significant and socially important the more it is able to involve users who are unable to sustain energy demand. The evolution of the research sees a narrowing of the field of investigation by focusing on the user dimension of energy poverty, stressing the role of citizens not only as consumer but also as producers of solutions to tackle energy poverty, real energy communities of agents. The paper aims to provide a systematic literature review highlighting the major findings of the topic, investigating the relationship between spatial and social issues, and looking at the state of energy poverty by addressing the profiling of users and consequently of services useful to overcome their current vulnerable condition. The paper is structured in two core sections. The first one gives the results of a systematic literature review on the energy/fuel poverty topic, the second one deepens the role of communities and individuals need, crucial in defining new design approaches for supportive solutions to tackle energy poverty.

Energy Poverty and Life Satisfaction: Structural Mechanisms and Their Implications

This paper investigates the distinct mechanisms through which energy poverty is linked to life satisfaction, via health status and one’s satisfaction with one’s own socioeconomic status, using data from the Life in Transition survey. Our sample contains 19,598 individuals from 11 former communist states located in Central and Eastern Europe, and two developed countries for comparison. We estimated a partial least squared–path model and found that both health status and socioeconomic status are relevant mediators. Our results also indicate that gender moderates the relation between health status and life satisfaction. Energy poverty has a low contribution to health status but a larger contribution to satisfaction with socioeconomic status, thus indicating that interventions on energy poverty may not greatly improve the level of health, but can have an influence on how people feel about their life. The contribution of our paper is twofold. On the one side, we continue to consolidate the existing link between energy poverty and self-reported health status with a new focus on the Central and Eastern European countries; on another side, we propose a theoretical framework expansion by including totally novel factors to be analyzed in this context: satisfaction with socioeconomic status, economic environment improvement, and intolerance.

Unveiling the factors affecting final electricity consumption: does the regional component matter?

Purpose

The purpose of this paper is to explore the developments in final electricity consumption, estimate the portions of changes that can be attributed to national, sectoral or regional factors, and to investigate determinants of the regional component (RC) in Croatia at the subnational level in the period 2001-2013.

Design/methodology/approach

In the first stage, the dynamic shift-share method is used to decompose final electricity consumption, and then, in the second stage, the panel population-averaged logit model is conducted to find the main determinants of the extracted RC.

Findings

The results show that both the sectoral factor and the regional factor are responsible for an increase in electricity consumption over the period considered, whereby the regional specificities had a larger impact in general. Thereby, the most developed regions, including the tourism-oriented ones, exhibited the largest average increase in electricity consumption mainly due to positive effects of the regional-specific factors, while the negative effects of these factors were mainly responsible for low average rates of changes in electricity consumption in less developed regions.

Practical implications

The results suggest that regional-specific energy conservation programs might be more effective in improving energy efficiency than the sector-oriented ones, as well as that socio-economic and contextual determinants matter when it comes to the probability of having a positive regional effect on the electricity consumption rate.

Originality/value

The paper investigated the determinants of the extracted RC which has not yet been addressed in the energy economics literature.

Rethinking the measurement of energy poverty in Europe: A critical analysis of indicators and data

Energy poverty - which has also been recognised via terms such as 'fuel poverty' and 'energy vulnerability' - occurs when a household experiences inadequate levels of energy services in the home. Measuring energy poverty is challenging, as it is a culturally sensitive and private condition, which is temporally and spatially dynamic. This is compounded by the limited availability of appropriate data and indicators, and lack of consensus on how energy poverty should be conceptualised and measured. Statistical indicators of energy poverty are an important and necessary part of the research and policy landscape. They carry great political weight, and are often used to guide the targeting of energy poverty measures - due to their perceived objectivity - with important consequences for both the indoor and built environment of housing. Focussing on the European Union specifically, this paper critically assesses the available statistical options for monitoring energy poverty, whilst also presenting options for improving existing data. This is examined through the lens of vulnerability thinking, by considering the ways in which policies and institutions, the built fabric and everyday practices shape energy use, alongside the manner in which energy poor households experience and address the issue on a day-to-day basis.