Conceptualising housing costs: The hidden face of energy poverty in Poland

Abstract

The study proposes an approach to assess a hidden aspect of energy poverty (EP) in Poland. We consider households' energy under-consumption driven by low energy efficiency and budgetary constraints. A household is exposed to hidden energy poverty (HEP) if it's total disposable income after deducting the expected housing cost falls under the established threshold. To approximate the expected total housing expenditures, the data from the EU-SILC dataset on dwellings parameters, households' attributes and regional characteristics of Poland is used.The results show that in 2017 the scale of exposure to HEP in Poland was 23.7 per cent and this phenomenon is to some extent linked to income poverty. There is a clear distinction between subjective EP indicators and exposure to HEP. Two different profiles of exposed to HEP households in Poland are constructed. The first group lives in detached houses and is composed of households with dependent children. The second group consists of elderly people inhabiting blocks of flats. Both groups should be targeted by separate policies.