The Effect of the Energy Price Increase on the Energy Poverty in Korea

Abstract

The energy poverty in Korea has been generally increasing regardless of the oil price fluctuations, but there were almost no fluctuations in the ratios from 2011 to 2013. Several implications emerge from the empirical findings. First, social minorities, like the elderly, the handicapped, and single-parent families, as well as low-income families are more vulnerable to energy poverty. This is supported by the logit regression results. Second, one of the causes of low-income households falling into energy poverty may be that they cannot afford energy-efficient electronic appliances. The energy poverty ratio can be alleviated by energy welfare programs; thus, government intervention is required.