Energy poverty assessment: Indicators and implications for developing and developed countries

Abstract

Energy poverty represents a considerable challenge that is difficult to quantify, monitor, and effectively address through policy measures. Efforts to tackle this problem have proven unsatisfactory for many reasons, including insufficient data on who is experiencing energy poverty to a poor definition of what this concept entails. This study examines methods for measuring energy poverty considering spatial, household preferences, home standards, and cultural differences among countries. The focus is on two commonly used indicators to communicate energy poverty issues at the local, national, and global levels: single indicators and multidimensional indices. The advantages and disadvantages of these indicators will be thoroughly examined. A dedicated study is provided to investigate the mechanism through which energy poverty affects the quality of life. The analysis reveals the limitations of single indicators in capturing the nuances of energy poverty across diverse contexts. Multidimensional indices offer a more comprehensive approach but require careful design and data availability. A framework is proposed for selecting appropriate indicators considering local needs and cultural specificities. By integrating insights from quality-of-life studies, the recommendations guide policymakers in designing effective interventions and targeting resources to maximize the impact on populations experiencing energy poverty.