Assessing the effects of the Covid-19 pandemic on energy poverty in EU countries using the Index of Energy Poverty

Abstract

Energy poverty is a distinct form of poverty and consists of difficulties in meeting the basic energy needs of household members. Even in "normal" times, energy poverty appears as a phenomenon with substantial implications for the quality of human life. But combined with the COVID-19 pandemic placed an enormous strain on households' energy costs. Energy poverty is an important concept because it affects millions of people worldwide and has significant implications for human health and well-being. In the EU, even before the pandemic, in 2018 almost 34 million Europeans were unable to afford to keep their homes adequately warm. In 2020 there were about 36 million Europeans suffered from this problem.The author intended to create a multidimensional measure of energy poverty (Index of Energy Poverty, IEP), based on which a ranking of EU countries from the most to the least vulnerable to this phenomenon was created. IEP values were calculated for two years - 2019 and 2021 - to assess the potential impact of the pandemic on the scale of this phenomenon. To estimate IEP, multidimensional comparative methods were used in a dynamic approach. Despite rising recognition of energy poverty significance, there are no universally accepted methodologies for assessing the level of this phenomenon and comparing it across nations due to differences in climate, housing base, and the relationship between income and energy expenses. However, a standard methodology for assessing energy poverty is required, and understanding the long-term dynamics of energy poverty might be critical for sensible and effective policies to combat this phenomenon.