Rethinking energy poverty alleviation through energy efficiency: Evidence from Ukraine

Abstract

Providing people with access to sustainable energy and overcoming energy poverty are essential tasks of the energy transition to a climate-neutral economy. The paper aims to examine the financial measures to alleviate energy poverty in Ukraine, such as the provision of energy subsidies and the financing of local programs to improve the energy efficiency of buildings through the Energy Efficiency Fund. Using statistical data of the International Energy Agency, Eurostat, the Ministry of Energy of Ukraine, and the State Statistics Service of Ukraine, the paper analyzes the state of energy poverty in Ukraine compared to EU countries. In the context of Ukraine’s intensifying energy and economic crises, the assessment of the fiscal cost of energy subsidies reflects a significant increase in an additional burden on the state budget. The fiscal cost of subsidies was assessed using the price-gap approach. The paper presents the results of energy modernization of buildings in Ukraine through the Energy Efficiency Fund. Implementation of energy modernization projects for buildings reduces energy costs and СО2 emissions, increases housing energy efficiency, and expands the possibilities of overcoming energy poverty. The application of the cost-benefit analysis method to sustainable housing renovation projects is demonstrated to more accurately assess energy and carbon impacts and to obtain financial support. The formulated proposals aim to raise awareness of power structures and support informed decision-making to overcome energy poverty and build a sustainable energy future for Ukraine. AcknowledgmentThis article presents the results of a study conducted as part of the scientific project “Formation of the foundations of nationally rooted stability and security of the economic development of Ukraine in the conditions of the hybrid “peace-war” system” (state registration number 0123U100965).