Health and Housing Energy Expenditures: A Two-Part Model Approach

Fátima Lima,Paula Ferreira,Vítor Leal

doi:10.3390/pr9060943

Abstract

Interest in the interaction between energy and health within the built environment has been increasing in recent years, in the context of sustainable development. However, in order to promote health and wellbeing across all ages it is necessary to have a better understanding of the association between health and energy at household level. This study contributes to this debate by addressing the case of Portugal using data from the Household Budget Survey (HBS) microdata database. A two-part model is applied to estimate health expenditures based on energy-related expenditures, as well as socioeconomic variables. Additional statistical methods are used to enhance the perception of relevant predictors for health expenditures. Our findings suggest that given the high significance and coefficient value, energy expenditure is a relevant explanatory variable for health expenditures. This result is further validated by a dominance analysis ranking. Moreover, the results show that health gains and medical cost reductions can be a key factor to consider on the assessment of the economic viability of energy efficiency projects in buildings. This is particularly relevant for the older and low-income segments of the population.

Highlights

Interest in the interaction between energy and health within the built environment has been increasing in recent years, in the context of climate change and sustainable development
Results are reported as Average Adjusted Predictions (AAP) to provide a better understanding of the amount of the model coefficients and the change in health expenditures produced by one unit change in the independent variable or in comparison to the reference level, depending on if the variable is continuous or categorical in nature
Our findings suggest that given the high significance and coefficient value, electricity expenditure is a relevant explanatory variable for health expenditures

Summary

Introduction

Interest in the interaction between energy and health within the built environment has been increasing in recent years, in the context of climate change and sustainable development. A severe lack of thermal comfort for heating and cooling seasons was identified by Gouveia et al, affecting fuel poverty households in Portugal [6] This has been considered a key challenge to establishing healthy housing guidelines [7]. Overheating has been already experienced by a significant number of dwellings in London, its impact on wellbeing was not quantified [8] This trend is expected to increase with climate change [9]. According to Santamouris (2020), it is expected to increase indoor temperature in low-income housing, affecting energy as well as health [10] In this context, recent research has emphasized the relevance of household energy efficiency to improving and promoting health and wellbeing [7,11]

Objectives

Methods

Results

Discussion

Conclusion