Quantifying the prevalence of energy poverty across Canada: Estimating domestic energy burden using an expenditures approach

Abstract

AbstractEnergy poverty is gaining public attention in Canada. Based on statistical analysis of Statistics Canada's 2016 Survey of Household Spending, we estimate that 7–9% of households spent more than 10% of their income on energy expenditures. Households in the Atlantic provinces faced the most energy poverty and highest energy expenditures. Low income, geography, and dwelling conditions were the main predictors of energy poverty. Households in energy poverty also spent approximately five times more on energy expenditures as a proportion of their total expenditures compared to households not in energy poverty. Our study fills a key research gap as a limited number of studies exist on the extent and drivers of energy poverty in Canada. Further, our study's robust quantitative estimates allow benchmarking and comparative research. These estimates lay the groundwork for evidence‐based solutions—and our findings highlight the need to reconsider current policies. Considering the challenge of the ratio of energy costs to income is vital, especially in the aftermath of events such as COVID‐19 or the 2021 heatwave in western Canada, which result in different energy behaviours and needs. More broadly, in the regular day‐to‐day, energy services should be seen as necessary and decision makers ought to consider the energy burden of Canadians.