Energy Poverty Index Research Articles

Determinants of energy security for rural households: The case of Melani and Hamburg communities, Eastern Cape, South Africa

ABSTRACT Energy plays critical direct and indirect roles in the livelihoods of human beings. Despite its relevance, the literature highlights that a majority of rural households are energy insecure and very much rely on unclean energy sources that compromise their health. Against this background, this paper estimates the determinants of energy security at the household level based on evidence from Melani-inland and Hamburg-coastal communities in the rural Eastern Cape Province of South Africa. The study used the multidimensional energy poverty index (MEPI) to calculate the energy security status of households in the two communities while the Tobit regression model was used to investigate the main factors affecting household energy security. The results indicated that in both communities, households were energy secure. However, access to additional energy measures was low, which could affect their energy security if the primary source (ESKOM electricity) is interrupted. Tobit regression results revealed that factors like marital status, household size, electricity affordability and source of income are the most critical factors influencing the energy security status of households in the study areas. Therefore, the paper recommends policy options that improve access of rural households to additional measures on energy and affordability of electricity.

Estimation and Determinants of Multidimensional Energy Poverty among Households in Nigeria

The sustainable use of clean and safe sources of energy is indeed a global challenge. Traditional and unsafe forms of energy use is predominant among households in sub-Saharan Africa. This is not only a threat to the environment, but also constitutes health risk to the population. In the Nigeria context, this study provides the first attempt to estimate household energy poverty status and also investigate the driving factors of household energy poverty status using the National Demographic Health Survey (NDHS) dataset. The analytical techniques adopted in this study are based on Multidimensional Energy Poverty Index (MEPI) and Tobit regression model. Our results show that national average MEPI was 0.38, suggesting that majority of the households are energy poor. Energy poverty is however found to be higher in rural areas than in urban areas. We also found that male-headed households, age, rural sector and northeast residents are found to be the energy poverty enhancing factors, while household income and credit access are energy poverty inhibiting factors. The study concludes that income smoothening among other energy poverty reduction interventions should be prioritized, especially among rural households in order to help them exit energy poverty trap.

Demystifying the authentic attributes of electricity-poor populations: The electrification landscape of rural off-grid island communities in the Philippines

Globally, there is now a substantial decrease in unelectrified households. This unidimensional measure, however, fails to convey the level of electricity access enjoyed by these households, with electricity poverty (EP) still considered prevalent. The multi-faceted nature of EP is already recognised with several multidimensional indices proposed that are still oriented towards the binary approach of either having or not having access to certain attributes. This paper presents the Household Electricity Poverty Matrix (HEPM), a practical tool that assigns tier levels to household electricity access attributes. In this study, EP is measured in three Philippine islands and an aggregated index is compared with that of the Multidimensional Energy Poverty Index (MEPI) approach. Results suggest that Gilutongan and Pangan-an, both having less than 24-h electricity access, experience high EP incidence while Cobrador Island, with 24-h access, has relatively lower EP incidence. MEPI, on the other hand, classifies Gilutongan and Cobrador as having low incidence and Pangan-an as having moderate EP incidence. This work demonstrates that HEPM is a better approach to realistically assess community electrification and can serve as a good basis in enhancing electrical energy policy towards closing the electricity access gap and providing its socio-economic relevance to the target communities.

Do socioeconomic factors determine household multidimensional energy poverty? Empirical evidence from South Asia

This paper examines the socioeconomic factors of energy poverty at the household level using a dataset of 674,834 households from six South Asian countries. An adjusted multidimensional energy poverty index (MEPI) is used to measure the extent and depth of energy poverty, and a Tobit model is employed to examine the significance of socioeconomic status for multidimensional energy poverty. An ordinary least squares (OLS) regression model is compared with the results of the Tobit model, using the combined dataset and the datasets for each country separately. House size, household wealth, education, occupation (clerical, sales, or agricultural), and gender of the head of the households are significant negative socioeconomic determinants of household multidimensional energy poverty. Place of residence, house ownership status, family size, and the age of the primary breadwinner play a significant positive role in multidimensional energy poverty. These results suggest that effective policy measures for improving the socioeconomic status of households will mitigate multidimensional energy poverty. With implications for the design and implementation of policy, the evidence-based results of this study will contribute to reducing the detrimental impacts of multidimensional energy poverty nationally, regionally, and globally.

Household Energy Poverty Index for India: An analysis of inter-state differences

The present study offers a novel approach in measuring Household Energy Poverty Index (HEPI) using National Sample Survey unit level data, employing a robust set of 15 key energy indicators representing multiple dimensions of energy and assigning weights by using principal component analysis (PCA). Grouping households into four different categories such as ‘least energy poor’, ‘less energy poor’, ‘more energy poor’ and ‘most energy poor’, it emerges from the study that more than 1/4th of total households in the country, falls under ‘most energy poor’ category, and 65% households in the country are in the ‘more and most energy poor’ groups implying the wide-scale prevalence of energy poverty in the country. In addition, analysis based on geographical spread of energy poverty reveals that eastern states and north-eastern states are more vulnerable in terms of energy poverty, hence requires strategic policy actions at all layers of governance. The HEPI can form a rigorous analytical basis for energy policy making in India – both the federal scale as well as at the state level.

Analysis of Energy Poverty in 7 Latin American Countries Using Multidimensional Energy Poverty Index

Energy poverty is a serious problem affecting many people in the world. To address it and alleviate it, the first action is to identify and measure the intensity of the population living in this condition. This paper seeks to generate information regarding the actual state of energy poverty by answering the research question: is it possible to measure the intensity of energy poverty between different Latin American countries with sufficient and equivalent data? To achieve this, the Multidimensional Energy Poverty Index (MEPI), proposed by Nussbaumer et al., was used. The results present two levels of lack of access to energy services: Energy Poverty (EP) and Extreme Energy Poverty (EEP). The last one, is a concept introduced by the authors to evaluate energy poverty using MEPI. Results of people living on EP (EEP within parentheses) are as follow: Colombia 29% (18%), Dominican Republic 32% (14%), Guatemala 76% (61%), Haiti 98% (91%), Honduras 72% (59%), Mexico 30% (17%) and Peru 65% (42%). A clear correlation between the Human Development Index (HDI) and MEPI is displayed, however some countries have relatively high values for the HDI, but do not perform so well in the MEPI and vice versa. Further investigation is needed.

Energy Poverty in EU countries and Ukraine

The article explains what they understand under the notion of «energy poverty» in EU countries. It is established that the appraisal of the energy poverty problem’s acuity is significantly complicated due to the lack of any standardized approach to the definition, great diversity in character, quantity, and power consumption peculiarities in various countries or just frequently mediated indicators available for estimation. Initial information for the appraisal of the level of the energy poverty can be usually obtained from sociological inquiries data. Detailed consideration is done with primary indices of the energy poverty in homesteads for the annual calculation of European energy poverty index with EU countries computed as the geometrical mean value of the sub-index of the energy poverty with European homesteads and the transport sub-index of the European energy poverty for homesteads from the first income-based quintile. Every two years Ukrainian Government Statistics Service conducts the procedure of self-appraisal of own incomes by homesteads in all regions of the country including data of material deprivation, so there are statistical information to compute the index of the similar energy poverty sub-index for European homesteads however in decile groups. An extraordinary high divergence of the index was detected between regions: from 4.8 per cent in Kyiv to 93.9 per cent in Carpathian Region. The dependency was detected between the percentages of homesteads having deficiency in money to maintain sufficiently warm temperature in their houses, and of people suffering from 4 or more of the 9 signs of deprivation that is having the very low quality of life. The article represents dynamics of the portion of the homesteads with insufficient funds to maintain a pretty warm temperature in their houses the whole heating period long subject to their financial situation. It was the most well-to-do people who declared the highest growth of the value. That was the witness of the fact that one cannot solve the problem of the energy poverty level reduction with homesteads just through the people’s incomes increase. Unfortunately, power consumption in the country is still irrational. The article substantiates that decentralization and the growth of power effectiveness are exclusively prospective directions for business advance especially for those who are now involved in network or regional business providing macro-economic effect through new jobs opening meaning additional budget takings. The urgent problem of Ukraine from the viewpoint of the social protection system’s improvement against the energy poverty is separation of purely power poverty fighting measures from the general maintenance system for low-income homesteads. Keywords energy poverty; homesteads; sociological inquiries; signs of deprivation; power effectiveness.

Energy Poverty in Ecuador

This paper aims to identify the presence of energy poverty in Ecuador. Three indicators proposed by the European Union Energy Poverty Observatory (EPOV) are used to construct a multidimensional energy poverty index (MEPI) based on measure conditions associated with energy poverty, in areas related to delays in the payment of electricity bills, disproportionate expenses, hidden energy poverty, and the 10% Boardman (1991) rule. The information comes from the Ecuatorian Life Conditions Survey. The results show that energy poverty is present in Ecuadorian households, at the national level, and just as these indicators have restrictions, advantages and disadvantages, which demand decisions about the choice of their use.

Energy poverty in Ghana: Any progress so far?

This paper investigates the dynamics of energy poverty in Ghana using two nationwide cross-sectional datasets (Ghana Living Standards Surveys Round 5 and Round 6). Employing the Multidimensional Energy Poverty Index (MEPI) as a measure of energy poverty, this paper estimates that the share of energy poor people decreased from 88.4% in 2005/2006 to 82.5% in 2012/2013. The results indicate that although there has been a significant decline in the overall energy poverty in Ghana during the study periods, the incidence of energy poverty remains high. Moreover, the study findings show a large gap between urban and rural energy poverty over the two periods; rural people are almost twice as energy poor as urban people. These findings suggest the need for the incorporation of energy poverty reduction strategies into income poverty reduction strategies to help improve not only access to modern energy but also in terms of affordability.

Comprehensive energy poverty index: Measuring energy poverty and identifying micro-level solutions in South and Southeast Asia

The absence of adequate modern sources of energy impedes the presence of decent living conditions. This very lack of modern sources of energy is Energy Poverty. Lack of availability, accessibility, and affordability are the main reasons behind this problem. In the literature, all three aspects were not covered together. In this paper, we have developed a composite index of energy poverty to measure the magnitude of energy poverty in the ASEAN region and India, where we capture all three elements. The measure revealed the degree of problem in each country, with Cambodia being the most energy poor amongst the countries in the study and Thailand being the least energy poor. To dig deeper into the problem at the micro level and to deliberate the policy implications, we developed detailed village-level case studies and analysed region-specific energy poverty. We thus identify the key root causes and propose effective solutions to eradicate the prevailing problem in these regions.

Energy Poverty Measures and the Identification of the Energy Poor: A Comparison between the Utilitarian and Multidimensional Approaches in Chile

This work explores the consequences that different energy poverty definitions might have in the energy policy debate. We estimate the ten percent rule index (TPRI) while proposing and measuring a multidimensional energy poverty index (PMEPI). Both indices uses the 2017 National Survey of Public Perception on Energy applied to a sample of 3,500 households in Chile. Although both measures find that the energy poor represents about 15% of the population, energy poverty levels vary differently across the population depending on the employed measure. Moreover, the indices produce different energy poverty rankings across the territory, and most energy poor households are either TPRI poor or PMEPI poor. We found that this discrepancy between both energy poverty measures is mostly explained by territory linked factors such as public lighting, service quality, service reliability, and thermal comfort. Consequently, an energy poverty analysis based solely on income or energy expenditure information (TPRI) is likely to neglect supply side constraints that are captured by the PMEPI. When identifying and targeting the energy deprived, the conclusion is that both energy poverty measures should not be used as substitutes but as complements.

An econometric analysis of domestic fuel consumption in Ghana: Implications for poverty reduction

The study looks at the determinants of household energy consumption and how that relates to general poverty and energy poverty. It extends the Multidimensional Energy Poverty Index (MEPI) by estimating the rural-urban differentials in MEPI. The study employed multinomial logistic regression on household adoption of energy for cooking and lighting. The Ghana Demographic and Health Survey—GDHS 2014 data were used for the regression and three waves (2003, 2008 and 2014) of the data were used to estimate the MEPI as well as the rural-urban contributions to the MEPI over time. The paper provides empirical insights that household energy consumption is affected by socioeconomic variables and rural households are more deprived than urban households in terms of access to and use of modern energy. The most popular energy for cooking is wood and main electricity is the most popular energy for lighting. The wealth status of household, nature of residence (rural or urban) and the size of the household are key socioeconomic variables that affect energy consumption. An estimation of the MEPI showed that it has been declining from a severely deprived energy poverty rate in 2003 to a moderately deprived energy poverty rate in 2014. Also, rural homes (57%) are more energy poor than urban (43%) households. The study includes implications for the provision of clean and better energy sources for household consumption policies. This study fulfills an identified need to look at general poverty in relation to energy poverty and to look at the rural-urban differentials in energy consumption.

Energy poverty and economic development: Household-level evidence from India

In this paper, we investigate the relationship between energy poverty and economic development in India and its trend over a decade. For this purpose, we estimate a Multidimensional Energy Poverty Index (MEPI) and an index of development at the district level using household level data. Empirical results show that energy poverty is quite extensive in India with substantial variations across the states and districts. Over the years, energy poverty shows a declining trend at all-India level, but with the exception of few bigger and less developed states. Further, the study records a negative relationship between economic development and energy poverty, the strength of relationship has increased during the study period. Among the components of economic development, education has a greater impact on reducing energy poverty compared with income. The study observes that energy poverty and socio-economic backwardness in India are highly correlated; Dalits and Adivasis have higher energy poverty and a lower rate in the reduction of energy poverty in comparison with the national average. Energy poverty is lower in urban India in comparison with rural India.

An Investigation of Multidimensional Energy Poverty among South African Low‐income Households

AbstractThis paper empirically assesses multidimensional energy poverty for low‐income households in South Africa using the four waves of the National Income Dynamics Study. The study adopts the Nussbaumer et al. (Measuring Energy Poverty, 2011) methodology, the multidimensional energy poverty index (MEPI), to estimate energy poverty on 10,801 low‐income households. The results indicate that low‐income households in rural areas are more energy deprived than those in the urban areas. The MEPI score across the years in low‐income urban and rural households depicts a moderate state of energy poverty. Furthermore, low‐income households in both the urban and the rural areas are mostly deprived in the dimension of heating fuel. The study recommends that suitable measures to combat energy poverty be rural–urban specific.

Diversification of energy poverty in Central and Eastern European countries

Household energy security, and in particular affordability of energy services and the energy poverty issue, is a debated topic both at the EU level and at the level of individual countries. The aim of the paper is to investigate the energy poverty diversity in the Central and Eastern European countries. The energy poverty index that aggregates three aspects: availability and affordability of energy services, as well as household energy efficiency, has been presented. This framework allows for comparison between countries and discloses the diversity of their energy poverty profiles. Analysis of energy poverty indicates diversification of level and dynamics of this phenomenon in the studied countries. Among countries of Central and Eastern Europe, there are both countries, where the problem of energy poverty is the highest, and the lowest in Europe. Almost all studied group is characterized by decreasing level of energy poverty in that particular period. Analysis of index components indicates diversification of energy poverty profiles. Important factor shaping the ability to acquire energy services was also the consequence of economic crisis, especially lowering the level of incomes and the increase of energy prices as a result of increasing tax burdens imposed on energy carriers.

A comparative study of the interlinkages between energy poverty and low carbon development in China and Germany by developing an energy poverty index

Energy poverty in developing countries is primarily a problem of adequate physical access to clean and modern energy; whereas energy poverty in developed countries is rather an issue of affordability and energy efficiency. Measuring energy poverty therefore is a challenging issue. An energy poverty index (EPI) considering the different components of energy poverty was developed to measure and compare energy poverty in China and Germany. Results of the EPI show that energy poverty is an important issue in both countries whereas energy poverty in China is an equal issue of affordability and access, while in Germany it is only an issue of affordability. Besides the pressing issue of energy poverty, both countries showed considerable efforts in implementing low carbon development (LCD) strategies in the last decade. Many LCD measurements and policies are strongly linked to energy efficiency and renewable energy, which can also contribute to a reduction of energy poverty by decreasing the energy consumption and expanding the access to high-quality energy carriers. An analysis of the implemented LCD policies and their effects on access to energy and affordability of energy in Germany and China, highlight possible challenges but also benefits of the interlinkages between energy poverty and LCD.

Extreme Energy Poverty Incidence and Determinants in Nigeria: A Multidimensional Approach

Energy poverty has emerged in recent times as a crucial aspect of poverty, afflicting the developing world in general and Nigeria in particular. Drawing from some of the recent literature on energy poverty measurement, this study measures and discusses the incidence and determinants of extreme energy poverty in Nigeria based on a robust multidimensional energy poverty index that covers five major dimensions and six indicators of deprivation in basic energy services. The study uses the 2010 Harmonised Nigeria Living Standard Survey—obtained from the National Bureau of Statistics, Abuja, Nigeria—for its analysis. The results of the study show, among other things, that over a fifth of the Nigerian population are afflicted by extreme energy poverty and the phenomenon is more pronounced in the rural areas than in the urban areas as well as in Northern Nigeria than in Southern Nigeria. The results also indicate that the determinants of extreme energy poverty include region of residence, household composition as well as age, gender and educational level of household head. The Nigerian government should take urgent and adequate steps to eradicate extreme energy poverty in the country in order to pave the way for rapid and sustainable development in the country.

Energy Poverty in Europe: A Multidimensional Approach

With the European Commission’s “Third Energy Package”, the challenges posed by energy poverty have been recently acknowledged by European legislation. The paper develops a synthetic indicator of energy poverty for the purpose of assessing households’ well-being across different domains of inequality in access to energy services and to a healthy domestic environment. These dimensions are broadly defined in terms of energy affordability and thermal efficiency, two of the main manifestations of energy poverty. The analysis focuses on Europe and expands on existing economic literature by employing a fuzzy analysis for the definition of a multidimensional energy poverty index, which is then used to investigate the role of individual and household characteristics in shaping energy poverty. We find that during the European crisis energy poverty has been more stable than monetary poverty, and that thermal efficiency plays a crucial role in shaping individual and countries’ average degrees of energy poverty. JEL codes: I32; Q41; D10; D63

Lighting and cooking fuel choices of households in Kisumu City, Kenya: A multidimensional energy poverty perspective

The present study aims to contextualize populations without access to modern energy in order to formulate effective policy considerations on modern energy adoption and continuity of usage by target groups. This objective was achieved by illustrating the linkage between fuel choice and energy poverty in low income households in an urban context. It employs a cross-sectional energy stacking model to illustrate fuel choice and the multidimensional energy poverty (MEP) index to establish the severity of energy poverty in low income households in Kisumu City, Kenya. The study also incorporates pico-solar products (PSPs) users, as this disruptive technology entered the Kenyan solar market in recent years, targeting low income households using kerosene for lighting purposes. The study identifies energy appliance type and household cooking location as key determinants of household energy choice. Moreover, the main determinants for household energy choice in households facing higher levels of energy poverty were closely associated with access concerns, whereas determinants in households facing lower levels of energy poverty were more associated with usage concerns as they already had access to modern energy. It was also noted that preferences were related to attributes of the energy source both experienced by current users and perceived by current non-users. There was a substantial persistent use of kerosene as an alternative lighting source among current PSPs users. There is a general preference and desire to use modern energy sources across most households, irrespective of the severity of energy poverty.For meaningful improvement to be realized towards meeting the energy SDG by 2030, national and local energy policies should consider the energy technology adoption perception and behaviours of populations currently not having modern energy access. In conclusion, it is of great importance to put into context the specific characteristics of the households as well as user perspectives and how these characteristics and perspectives would affect continuity of usage of the modern energy source adopted.

Electrical energy poverty among micro-enterprises: Indices estimation approach for the city of Ibadan, Nigeria

In this paper, indices that could evaluate electrical energy poverty among micro enterprises are developed with the aim of pointing out and suggesting the area of intervention to improve productivity of the micro enterprises. These indices are: device suitability index, electricity affordability index, electricity availability index and composite electrical energy poverty index. The indices are measures in a scale of 0–1 with 0 being the least electrical energy poverty (desired value) while 1 denotes ‘worst’ acute electrical energy poverty. To enhance the understanding and applicability of the developed indices in measuring electrical energy poverty, data relating to electricity usage among micro enterprises for the city of Ibadan is obtained through questionnaire and interview of six (6) most common groups of micro enterprises (barber salon, beauty salon, document &IT, tailoring, sales consumables and sales non-consumables (i.e. clothes, shoes, electronics etc.) in sixteen (16) different locations in the city of Ibadan. The data are then applied to the developed indices in a step wisely manner. Some of the key results reveal that micro-enterprises in the city of Ibadan are doing well in terms of possession of electrical device. However, electricity availability is poor with significant negative effect on business productivity. The developed indices have the capability to suggest the areas that need improvement in order to improve overall electrical energy poverty. This paper serves as a good tool that could aids decision making at improving the business activities of micro enterprises.