Methods for estimating “Fuel poverty” in public administration and management systems

Nadiia Pysar,Andriy Bandura,Viktoriia Chornii,Yevgen Khlobystov

doi:10.21511/ppm.16(2).2018.31

Abstract

The Ukrainian energy market has been analyzed region-wise in terms of consumption of fuel and energy resources by household sector. Critical aspects of improving energy security have been reflected in the context of the use of energy resources. The principal directions of the socially responsible market economy system have been offered in the light of the country’s economic security in terms of overcoming “fuel poverty”. Cognitive features of the “fuel poverty” phenomenon have been defined. Mathematical modeling of the “fuel poverty” index has been carried out using the following approaches: “after fuel cost poverty”; energy expenditure above 10% of disposable income; the Low Income – High Costs, where households with relatively high energy costs and low income are emphasized. A model of the final calculation of household energy costs has been developed for the purpose of optimal management. The graphical abstract of the obtained “fuel poverty” index solutions has been presented, with the upper left corner – low income – high costs – serving as a critical zone. The block diagram of improving the socially responsible market economy system in the light of overcoming “fuel poverty” has been offered.

Highlights

INTRODUCTIONThe relevance of research into the search for re- finement “Ukraine on the Verge of Fuel poverty: liable, stable energy supply of the economy and How to Protect Socially Vulnerable Groups”, the the public is emphasized by many researchers, specialists of the International Center for Policy namely, Sukhodolia and Smenkovskyi (2013) Studies (Gazizullin, Lozovyi, & Eiklz, 2013) lay who have been investigating the creation of the special emphasis on researching into the problems necessary institutional framework for energy of protecting vulnerable energy consumers as part functioning in market conditions and the pater- of the reform of the energy market
In Ukraine, the formation of an energy policy aimed at transforming energy into an economically lucrative, flexible economy sector involves the creation of competitive domestic energy markets, minimization of dominance of one of the energy production methods or fuel supply routes, elimination of cross subsidization, abolition of the existing energy supply subsidy system, transition to market pricing (Analytical Report to the Annual Address of the President of Ukraine to the Verkhovna Rada of Ukraine, 2017)
The above is indicative of the fact that the area of research dedicated to the methodological approaches to estimasting “fuel poverty” is topical and necessary in terms of Ukraine’s energy market deregulation

Summary

INTRODUCTION

The relevance of research into the search for re- finement “Ukraine on the Verge of Fuel poverty: liable, stable energy supply of the economy and How to Protect Socially Vulnerable Groups”, the the public is emphasized by many researchers, specialists of the International Center for Policy namely, Sukhodolia and Smenkovskyi (2013) Studies (Gazizullin, Lozovyi, & Eiklz, 2013) lay who have been investigating the creation of the special emphasis on researching into the problems necessary institutional framework for energy of protecting vulnerable energy consumers as part functioning in market conditions and the pater- of the reform of the energy market. The current been considered by Poliakova and Novosilska issue of developing methodological approaches to (2015) who have studied the public poverty in the actual calculation of the “fuel poverty” index terms of consumption. Similar approaches allow to estimates the public poverty in terms of living investigate a set of factors affecting the phenomeconditions, with Shyshkin (2016) estimating the non under study. PURPOSE AND considered in the investigations by Hills (2011), Boardman (1991)

OBJECTIVES

RESULTS

Findings

CONCLUSION