European Households Research Articles

Inflation, Fiscal Policy, and Inequality: The Impact of the Post‐Pandemic Price Surge and Fiscal Measures on European Households

AbstractFollowing the inflation surge in the aftermath of the pandemic crisis, Euro Area governments adopted a large array of fiscal measures to cushion its impact on households. The inflationary shock and related fiscal measures affected households differently depending on their country, their consumption patterns, and their position in the income distribution. This paper uncovers the aggregate and distributional impact of this inflationary shock, as well as the impact of the government measures aimed at supporting households and containing prices. The analysis is carried out for 2022 and includes Germany, France, Italy, Spain, Portugal, and Greece. Our work confirms that the purchasing power and welfare of low‐income households was more severely affected than that of high‐income households. Fiscal measures contributed significantly to closing this gap, though with country differences. However, most fiscal measures were not particularly targeted at low‐income households, implying a low cost‐effectiveness in protecting the poorest in some countries.

Energy and Carbon Savings in European Households Resulting from Behavioral Changes

The study evaluates the impact of behavioral changes resulting from climate awareness on energy consumption and carbon emissions in European households based on the results of a two-stage survey addressed to individuals manifesting pro-ecological attitudes. In the first stage, the author analyzed 67 pro-environmental behaviors declared by the participants, identified a set of new sustainable choices, and compared them to the conservation habits used in Rasch and Campbell’s models. The 10 most popular initiatives undertaken by over 50% of participants were selected for further analysis. The influence of these initiatives on energy consumption and CO2 emissions was assessed. A total of 24 impact indicators were identified at the building scale. Energy and carbon savings were calculated for 500 participants from 28 European countries and compared to the results computed for the 100 households used as a reference. The main conclusions from the research concern the significance of individual decisions at the building scale in the context of their actual environmental impact calculated for a larger scale. The comparative analysis showed that the highest annual energy (2292.1 MWh) and emission (267.02 tons of CO2) savings resulted from the car-to-bicycle (or walking) transition on short-distance trips (declared by 79%) and from the transition from non-renewable to renewable energy sources (PV panels installed by 65% of respondents). Annual energy and emission savings reached, respectively, 1300 MWh and 262.6 tons of CO2. The research findings help explain the critical importance of transforming the built environment towards renewable energy sources and supporting pedestrian and sustainable transportation.

Housing conditions in European one-person households.

This study addresses the satisfaction of housing-related needs in single-person households across European countries. The primary objective is to assess the housing satisfaction of single-person households in European countries, specifically within the Visegrad Group. The study seeks to identify trends in housing conditions, create a ranking of countries based on these conditions, and categorize countries with similar levels of unmet housing needs. The study employs statistical measures and methods to achieve its objectives. Time series are constructed for European countries, and linear trends are analyzed to identify statistically significant changes in selected housing aspects from 2005 to 2022. Various research tasks, including ranking countries and grouping them based on housing conditions, are accomplished using established methods like linear ranking and Ward's cluster analysis. Key findings include significant variations in financial burdens related to housing costs, thermal comfort, environmental pollution, and safety issues across European countries. The study reveals both improvements and challenges in housing conditions from 2005 to 2022 in one-person households. For instance, financial stress due to housing costs decreased in some countries, while thermal comfort issues improved in several nations. The results also highlight the heterogeneity within the Visegrad Group. The study concludes that there is a need for targeted actions to address housing-related issues in single-person households. The findings underscore the importance of investments in building energy efficiency, initiatives for affordable housing construction, and environmental policies. The research emphasizes the impact of housing conditions on health, well-being, and overall community life, urging policymakers to consider these factors for holistic improvement in the housing sector.

Perception towards reducing natural gas consumption and imports in Europe: A theoretical and empirical investigation

The European energy system is undergoing a drastic change, focusing on reducing natural gas consumption and import. European households, which are responsible for 25 % of final energy consumption, mainly based on natural gas, could play a significant role in such a transition. Therefore, the study aims to understand the perception towards natural gas consumption reduction and imports. An online questionnaire was designed based on an extended version of the theory of planned behaviour, which 257 highly educated respondents filled out. The results delineated the respondents' positive perception of reducing natural gas consumption. Specific attributes (i.e., environmental concerns, national sustainable and efficient energy system, and national energy independence) and personal moral norms (i.e., moral responsibility) significantly impact the willingness and effort to reduce natural gas consumption. The lack of control is the largest perceived control behaviour in reducing the respondents' natural gas consumption compared to available knowledge and affordability. Finally, the respondents care significantly and want to know about natural gas import sources, and they are highly against natural gas imports from Russia, the United States, the Middle Eastern, and Arab countries. Based on the insights, the study provides detailed recommendations. The study provides concrete recommendations for policy-makers to include environmental, humanitarian and energy-independence concerns in their decision-making processes related to natural gas imports and consumption. It also emphasises informing and involving individual households in such decision-making processes.

Estimating the direct rebound effect for residential electricity use in seventeen European countries: Short and long-run perspectives

The energy saved by improving the building efficiency of European households may not be as much as expected due to a rebound effect. Based on Eurostat and World Bank annual panel data covering the period 1996–2020, this article develops dynamic panel approaches, a generalized method of moments, and first-difference specifications, to investigate the direct rebound effect of residential electricity consumption in selected European countries. Instrumental variable techniques are used to tackle the reverse causality of the electricity price in a demand model. Estimates of the direct rebound effect in residential electricity use are 18% in the short-run and 43% in the long-run. Our findings reject the hypothesis of a backfire effect in residential electricity demand. They have important implications for policy makers, suggesting the need for smart policies that consider energy consumption behaviors and decision-making processes among various households.

Adding mirror clauses within the European Green Deal: Hype or hope?

AbstractThe proposed reductions in farm input uses foreseen in the European Green Deal may penalize European farm production while increasing environmental leakages to foreign countries where production may expand. These expected impacts have led to calls for a more restrictive trade policy based on mirror clauses. This paper considers as a case study a potential ban on glyphosate in vegetable and fruits production. We develop an original computable general equilibrium model with endogenous adoption of new European production standards by foreign producers on currently latent markets. We find in our case study that adding mirror clauses to the Green Deal marginally improves European farm income and the global environmental footprint of food. We find that foreign producers as a whole can gain from these clauses and not lose as in a standard analysis. European households support these clauses by paying higher food bills while consuming vegetables and fruits produced without glyphosate.

Influence of a Mortgage Interest Deduction on Homeownership Attainment of European Households

This article provides new European evidence about the relation between the much discussed mortgage interest deduction (MID) and homeownership. We also examine which household-group, based on income or marital status, is (mainly) encouraged via this fiscal relief to own a home. To do so, we estimate multilevel mixed-effects logistic regressions by using Eurostat EU-statistics on income and living conditions data in twelve countries over 2003-2018. Our quantitative study shows that an MID generally fails to advance its purpose of promoting homeownership, likely due to price capitalization. However, our results underscore that there is (substantial) variation across household groups. From the odds ratios, we conclude that the intended positive effect of an MID on homeownership probability occurs only for the highest-income households; those who need the most help with good-quality affordable housing are the most discouraged via this relief to become a homeowner. Since the continuation of an MID remains one of the contested issues in many national debates, our empirical findings provide useful insights for governments around the world that wish to promote homeownership through tax incentives.

Managing Household Food Waste with the FoodSaveShare Mobile Application

It is estimated that European households are responsible for 55% of food waste generation. Key factors contributing to household food waste generation include food spoilage, confusion over expiration dates, overbuying, and inadequate shopping planning. Thus, food waste prevention at the household level depends heavily on food supplies monitoring and management. To this end, during the last decade, several consumer-oriented digital tools have been designed and launched. A literature review showed that currently accessible digital tools are scarce and cover a narrow range of functionalities. Here, we address these issues by designing and launching a decision support tool implemented in a smart mobile phone application (app), the FoodSaveShare Mobile App. The application development followed a traditional client–server architecture using state-of-the-art software and hardware technologies. Additionally, a survey of 340 individuals was conducted to better understand end-user motivation for and barriers against adopting this and similar apps. The developed application combines user-provided data with a retailer loyalty program to leverage the integrated features for tracking shopping activities. The app features a household shopping list populated by product barcode scanning and manual entry. Based on food and packaging type, food products are assigned approximate expiration dates to issue product expiration reminders. For products about to expire, suggestions for their utilization are provided, drawing from a list of over 7000 recipes. Additional functionality allows users to identify products that have either been consumed in time or that need to be discarded. Analytical tools, such as past purchase and resources discarded versus resources saved statistics, offer comprehensive insight and encourage improved shopping and consumption practices. The FoodSaveShare App was launched during the A2UFood Project, which allowed an organised campaign for its use. The app was tested under real customer data and conditions, and selected features have been adopted by the largest supermarket chain on the Island of Crete, Greece. The potential end-user survey results suggest that, provided personal data use issues are addressed, such apps can have a significant impact on reducing household food waste. Future work will focus on analysing the datasets produced by the application to assess its impact on household food waste management.

Income and electricity consumption issue: evidence from European households

Research on electricity consumption plays an important role in the development of sustainable national strategies and mitigation of global climate change. With global economic development in general, and Europe in particular, the demand for electricity in households is increasing. Therefore, based on demand theory, this study evaluates the impact of income on electricity consumption in European households. Data were collected from 35 European countries and analyzed. The instrumental variable regression results indicate that income positively impacts electricity consumption in European households. The electricity consumption of European households provides evidence that supports the prediction of demand theory, as an increase in household income as well as a decrease in price leads to a rise in overall consumption. However, the effect of price is not statistically significant. The findings also show that population growth and inflation positively influence household electricity consumption. The outcomes of this study have theoretical and practical implications for improving energy efficiency and effective electricity use in European households. Therefore, it is necessary to continue implementing energy-saving strategies at the household level in the context of increasing electricity consumption in Europe.

Heating and cooling degree-days vs climate change in years 1979-2021. Evidence from the European Union and Norway

Energy consumption depends strongly on weather conditions. Thus, to formulate energy-related policy goals, it is crucial to monitor changes related to the heating degree days (HDD) and cooling degree days (CDD) – widely applied indicators of climate change. The study investigated the impact that climate change (global warming) exerted on the number of HDD and CDD, as well as the weather-related final energy consumption of the European households (EU-27 and Norway), based on data derived from Eurostat for the period 1979-2021. The results indicate that the changes in HDD and CDD constituted non-linear functions of the country’s average temperature, with the largest percentage changes observed in the warmest (in the case of HDD) and the coldest (in the case of CDD) portion of European countries. As indicated by estimations based on first-difference linear regression models, climate change has contributed so far to the net decrease in weather-related energy consumption of households.

A New Journal Focusing on Companion Animals—A Welcome Message from the Editor-in-Chief

More than half of US and European households own one or more pets [...]

Shifts at the margin of European welfare states: How important is food aid in complementing inadequate minimum incomes?

In recent decades, disappointing poverty trends and welfare state limitations in many European countries – including constraints on minimum income benefits – have paved the way for a larger role of the third sector. An interesting but controversial form of third-sector in-kind support is food aid provision. In Europe, food aid is, so far, a non-rights-based practice displaying worrisome discretionary and stigmatizing characteristics. Yet, the phenomenon of food aid in Europe has spread, professionalized, and penetrated the institutions of the welfare state. This raises the question if, how and to what extent food aid plays a role in bypassing structural constraints on minimum income protection. This article applies an exploratory case study approach to estimate the monetary value of food aid in relation to statutory minimum incomes in four EU-countries. We use cross-nationally comparable food reference budgets to price food aid packages in Belgium, Finland, Hungary and Spain. The results show that food aid, although not sufficient to close the at-risk-of-poverty gap, is non-trivial for some European households. In Spain and Belgium food aid packages can reach up to €100 a month (expressing 7% to 11% of respective minimum income benefit levels). Importantly, we perceive (formalized) cooperation and interaction between local welfare agencies and food charities in all countries, suggesting that welfare state actors use non-rights-based food aid for filling gaps in the social safety net. The large between- and within-country variation of the monetary values of food aid packages points, however, to food aid as a problematic discretionary practice.

State Dependence in Material and Social Deprivation in European Single-Parent Households

This paper explores the dynamics of social exclusion as measured by material and social deprivation in the particularly exposed category of single-parent households. We aim to assess whether there is true state dependence in deprivation and the role of other household factors, as well as that of the macro-economic and social welfare scenario. We use 2015–2018 European Union Statistics on Income and Living Conditions longitudinal data to explore a large set of European countries. We estimate three-level dynamic probit models that enable us to account for micro- and country-level unobserved heterogeneity. Our results suggest that material and social deprivation is likely to be a trap for single-parent households and that this effect is stronger for these households than for those composed of two adults and children. Among single-parent households, those headed by a female are worse off than those headed by a male. The policy implications of these findings are also discussed.

THE SOCIAL STRATIFICATION OF INFORMAL CAREGIVING ARRANGEMENTS IN EUROPE

Abstract In ageing societies, the increasing quota of older and frail individuals creates unprecedented needs for care. As care is often costly and not adequately covered by the welfare state, care responsibilities for older individuals fall on the shoulders of family members. The study of informal care provision is acquiring centrality both in the social sciences and policy discourse, since the care load can bear negative consequences on a range of outcomes, from health (e.g., the “caregiver burden”) to employment. It is important to gain a better understanding of which individuals are the most likely to provide informal caregiving and face its consequences. In the present study, we explore the educational and income differences in the probability of providing informal caregiving to individuals living outside the household in Europe, using the Survey of Health, Aging and Retirement in Europe (SHARE, 2004-2020). As a contribution to the field, we aim at uncovering the mechanisms behind the socio-economic gradient in caregiving, such as differences in health and longevity and time constraints (due to employment and other care responsibilities) that are unequally distributed across social layers. Results show that individuals with tertiary education, and at the top of the income distribution, are more likely to provide care, net of several other factors. The study concludes with attempted explanations of the results, related to the fact that lower educated, and lower income individuals, can more often rely on publicly provided services and means-tested benefits.

Living standards and quality of life in the EU: challenges of “new” reality

Over the past few years, the European economy and the social and labor sphere have been caught in the crossfire of rising energy and commodity prices, a shortage of skilled labor, and the increasing difficulty for many businesses and citizens to pay their bills amid falling real household incomes and the competitive advantages of goods and services production. The anti-Russian sanctions have put many European households on the brink of insolvency. At the same time, problems associated with the demographic transition, the transformation of industrial production and employment due to the digitalization of all kinds of activities, and changes in social standards have not disappeared. The consequences of the negative impact of the COVID-19 pandemic on the labor market, the level and quality of life of the population in a situation of uneven recovery of the European and world economy by regions, industries and forms of economic activity have not been fully overcome. The article analyses the state and prospects of the financial situation of European households against the background of a significant slowdown in economic growth, unprecedented inflation in the region and the efforts of the authorities to solve a complicated problem of overcoming the cost-of-living crisis in the EU.

DIFFERENTIATION OF EUROPEAN HOUSEHOLDS LIVING RURAL AREAS INCLUDING SUBJECTIVE ASSESSMENTS OF THEIR FINANCIAL AND ECONOMIC SITUATION – COMPARATIVE ANALYSIS

Subjective assessments of the financial situation of households are a measure that is increasingly used in comparative analyses of living conditions and quality of life, as well as satisfaction with the economic and economic situation. Due to the fact that assessments of financial situation are highly individual and subjective, it is important to emphasise that different households may assess their situation differently, even under similar economic conditions. The material in this study was secondary data collected and published by Eurostat on households living in rural areas. The aim of this study was to answer the question: (1) whether the diagnostic variables adopted for the analysis statistically significantly differentiate European households and (2) whether the clustering effect in 2015 and 2022 is the same. To analyze the diversity of diagnostic variables, Mahalanobis measures of observation immersion in the sample were used. The analysis made it possible to evaluate the analysis of spatial diversity of European households living in rural areas and to distinguish groups of countries showing similarities due to the diagnostic variables adopted for the analysis.

5.A. Workshop: Reducing and monitoring sugar, fat, and salt in packaged food: Germany and the European context

Abstract Today, packaged food constitutes more than 50 % of the food supply in most European households. Many of those products are high in energy, sugar, fat, and salt, and consuming them is positively associated with overweight and obesity. Measures such as taxation and reformulation of packaged food high in sugar, fat, or salt are considered effective means to improve food environments and facilitate healthier food choices for individuals. However, the measures as well as their implementation and evaluation vary across Europe. The aim of this workshop is to give an overview of the different actions taken to stimulate the reformulation of food and beverages. Furthermore, we will present the German monitoring of packaged food, including selected findings, as one example to guide such reformulation initiatives. In the first part of our workshop we summarize existing measures in Europe to facilitate health-promoting food choices, focusing on reformulation measures and related monitoring approaches: Presentation 1 will give a systematic overview of measures to reduce sugar, fat, and salt content of food and beverages in selected European countries (Abstract 1). With presentation 2, we will give methodological insights into the German monitoring of the energy and nutrient content in packaged food (Abstract 2). Presentation 3 will focus on the latest results of the German product monitoring, with an emphasis on sugar reduction in soft drinks, yoghurts, and breakfast cereals. Furthermore, we will compare our results to those of other European countries and highlight methodical differences (Abstract 3). In the second half of the workshop, we aim to discuss our findings with the participants. Participants are encouraged to contribute further examples and experiences from their countries, which then will be discussed and documented. Opening questions and polls will be used to stimulate active involvement. Our workshop aims to contribute to better reporting of existing measures and reformulation monitoring methods in Europe, as information is often limited and only available in respective national languages. Moreover, we hope to create a community of practice to continue exchange on the effectiveness of the respective measures and good practice models across Europe. Key messages • The workshop gives an overview of different measures to reduce sugar, fat, and salt content in packaged food in Europe, incl. related monitoring. • The workshop provides a platform to exchange experiences in packaged food monitoring and stimulate scientific exchange and transparency within this area.

Does religion influence the household finance? Evidence from Europe

PurposeThis paper aims to examine the influence of religious backgrounds and religiosity on three dimensions of household finance (the decision to hold secured debt, the likelihood of being in a state of financial distress and the likelihood of being in a state of financial well-being) across a large sample of European countries.Design/methodology/approachThe study uses data from the European Union Statistics on Income and Living Conditions (EU-SILC) data set, spanning from 2004 to 2018. The authors conduct regression analysis to examine the relationship between religion and household financial choices.FindingsThe study finds that belonging to a predominantly Catholic or Orthodox (Protestant) country is negatively (positively) associated with the likelihood of holding a mortgage. Belonging to a mostly Catholic (Protestant) country is negatively (positively) associated with the likelihood of being in a state of financial distress. Belonging to a predominantly Catholic (Protestant) country is positively (negatively) associated with the likelihood of being in a state of financial well-being. These relationships remain robust after controlling for a large number of demographic and economic variables.Originality/valueIn this paper, the authors analyze for the first time the impact of religion on household finance in a wide range of European countries. It is also the first time that the EU-SILC database, which aggregates data on more than three million European households, is used for the study of this topic.

Assessing the Emissions Related to European Households’ Expenditures and Their Impact on Achieving Carbon Neutrality

The European Green Deal comprises various policy initiatives with the goal of reaching carbon neutrality by 2050. The “Fit for 55 packages” include the Social Climate Fund, which aims to help, among others, vulnerable households and transport users meet the costs of the green energy transition. Thus, analyzing households’ expenditures and the associated carbon emissions is crucial to achieving a net-zero society. In the present study, we combine scenarios of households’ expenditures according to the Classification of Individual Consumption According to Purpose with economic decoupling scenarios to assess, for the first time, the European carbon budget allocation on a consumption basis. Expenditure projections based on socioeconomic scenarios were calculated using the Bayesian structural time series, and the associated emissions were estimated through the greenhouse gas intensity of the Gross Domestic Product. The model can be used to report the carbon budget of households and monitor the effectiveness of the measures funded by the Social Climate Fund. However, the emissions burden obtained by means of averaged greenhouse gas intensity of Gross Domestic Product results in a rough approximation of outcomes, and more accurate indicators should be developed across the member states.

Digitalisation: an enabler for the clean energy transition

Russia’s war on Ukraine and the resulting energy crisis have painfully reminded Europe that it must urgently reduce its dependence on fossil fuels. For a sustainable, secure and affordable energy future, the coming years will require a massive scale-up of renewable energy across the EU and a tremendous effort by European businesses and households to cut their energy consumption. The use of data and digital solutions can play a pivotal role in bolstering these efforts. This has been recognised in the European Commission’s EU Action Plan on digitalising the energy system of October 2022, the first comprehensive plan for a twin green and digital transition in the European energy sector. While this plan is undeniably commendable, it is just a start. To fully unlock the potential of digitalisation in the transition towards sustainable energy systems, built around the active participation of consumers, significant shares of renewables, energy savings, and efficient energy use, the EU and its member states need to: Accelerate work on a common European energy data space, characterised by interoperable data standards, effective incentives for data sharing and adequate data protection and privacy safeguards for consumers. Ensure that citizens possess the necessary digital skills and information to reap the full benefits of the twin transition in terms of consumer empowerment and access to affordable and clean energy. Put in place the necessary safeguards regarding cybersecurity of energy networks to ensure that digital transformation does not jeopardise the resilience of EU energy systems. Use financial tools to accelerate the deployment of digital solutions in the energy sector and equip existing networks with the necessary digital infrastructure.