Measuring Energy Poverty Research Articles

The Road to Eliminating Energy Poverty: Does Renewable Energy Technology Innovation Work?

Under the constraint of carbon neutrality targets, the issue of energy poverty has garnered increasing concerns. This study aims to measure energy poverty and assess the impact of renewable energy technology innovation in 30 provinces across China. Furthermore, it calculates city-level energy poverty in 274 cities. By examining the influence of renewable energy technology innovation on energy poverty, this study proposes a new approach to accelerate energy transition and promote sustainable development. The regression results, which have undergone rigorous robustness and endogeneity tests, demonstrate that renewable energy technology innovation significantly alleviates energy poverty. Moreover, the treatment effect of policies is determined through the regression control method. Specifically, the cities of Zhangjiakou, Baotou, and Qiqihar are analyzed to provide targeted suggestions for China’s energy development. The treatment effects of both provincial and city-level policies indicate that implementing renewable energy demonstration zones can effectively alleviate energy poverty. JEL Classification: Q48; O31

Exploring the effect of energy transition on energy poverty in the european union: Empirical evidence

ABSTRACT During the past few years, the risk of energy poverty has become a reality for an increasing number of households in the European Union and worldwide. Institutions react to this problem basically by introducing new policy measures. However, their efforts collide with two significant issues: (1) the difficulty of objectively measuring energy poverty among countries and (2) the understanding of the cause-effect relationship among policy measures and their impact on energy poverty. In this study, we propose a composite measure of energy poverty alternative to the existing approaches in order to make more effective time comparisons across member states of European Union. Then, we verify whether the investments to support energy transition implemented so far has been able to affect energy poverty among European Union countries. Outcomes reveal that energy transition can be considered a means to alleviate energy poverty, supporting the efforts of policymakers who propose measures toward the energy transition.

Space–Time Forecasting of Heating & Cooling Energy Needs as an Energy Poverty Measure in Romania

Lack of access to basic energy services, known as energy poverty, remains felt in the country, with seasonal changes and an economic divide. The frameworks to measure energy poverty differ spatially and temporally, with climate change and behavioral culture being the essential influencing factors. This paper is focused on heating and cooling energy demands, which can be defined as an energy poverty metric for the propensity to be at risk of energy poverty caused by climate regime. Employing sophisticated statistical space–time forecasting tools, we build a model incorporating spatial and temporal energy consumption volatility across Romanian regions at the NUTS3 level. The model considers climatic conditions and raw data from 45 years (1979–2023) of cooling and heating degree days to determine local trajectories for the next nine years. Identifying high-energy-poverty-risk areas in our research can provide valuable insights for policymakers, enabling them to develop targeted plans for eliminating energy poverty and ensuring equitable access to heating and cooling. The results underline the necessity of differentiated approaches in energy policies and add value to the general understanding of energy poverty issues and conditions, considering the Romanian climatic and socio-economic context.

Pobreza Energética en Chorrera Mirador: Implementación y Monitoreo de un Sistema Híbrido Solar-Eólico

This work studies energy poverty in the community of Chorrera Mirador, located in Chimborazo, Ecuador. Energy poverty, defined as the inability to cover basic energy needs such as heating, cooking, and refrigeration, affects rural areas of Latin America. In Ecuador, this problem is exacerbated in rural areas, where more than half of the population suffers from it. The article proposes a methodology to measure energy poverty using the multidimensional energy poverty index (MEPI), which evaluates multiple conditions associated with this problem in households. The results reveal moderate energy poverty in the community, which justifies the implementation of a hybrid solar and wind renewable energy system (SHER) to mitigate it. The SHER was sized based on the daily energy demand and the solar and wind resources available in the area. A data collection system is included to monitor the voltage stability and power production of the system. The results demonstrate the functionality of the system and its ability to satisfy the energy demand of the community. The study concludes that the implementation of the SHER, together with the use of low-consumption lighting elements, contributes to mitigating energy poverty in the Chorrera Mirador community, improving the quality of life of its inhabitants. In addition, the data collection system allows for long-term analysis, which makes it easier to identify possible improvements and strategies to optimize its operation

Multidimensional energy poverty in Colombia: A department-level review from 2018 to 2022

This article aims to measure energy poverty in Colombia in its thirty-two departments and its capital city from 2018 to 2022, using a composite approach. To achieve this, a Multidimensional Energy Poverty Index (MEPI) was designed, according to the methodology proposed by Nussbaumer et al. (2012; 2013) [1,2]. Twenty-eight variables were used, which were distributed across seven dimensions, and recorded by the National Quality of Life Survey (ECV, Spanish acronym), administered by the National Administrative Department of Statistics (DANE) of Colombia. In addition, a nested weighting method was used to assign weights within the index. Subjective weights were given to the dimensions, and an entropy method was used for each of the component variables. The results show that energy poverty has an increasing trend in Colombia throughout the period, especially in the municipal capitals. There are significant differences between urban and rural areas in all territories, and the departments located in the most remote areas of the country have a higher energy poverty. This is consistent with the low population density, as well as with off-grid areas. The results obtained will allow decision makers to conduct a preliminary evaluation of the management and effects of the specific public policy programs and plans that have been implemented in the different territories of the country.

Multidimensional energy poverty and human well-being: household-level evidence from India

Purpose This paper aims to assess the relationship between energy poverty and the well-being of people using Amartya Sen’s capability approach to development as theoretical underpinning. Design/methodology/approach The study uses household-level energy access data collected by the Harvard Dataverse in 2015 and 2018. The authors use multidimensional indices to measure energy poverty and well-being. Further, the authors apply quantile regression approach to measure the relationship between energy poverty and well-being. Findings The study’s findings reveal that energy poverty and well-being are negatively related. India has made progress in reducing energy poverty and improving well-being during the study period. However, progress in reducing energy poverty is largely due to improved access to electricity and improvement in well-being due to income and financial inclusion. Using modern cooking fuel has a greater negative impact on well-being compared to lighting using electricity. Further, households spending a greater proportion of their income on modern energy fuels leads to a lower quality of life as it precludes them from using it for other purposes. The study records wide variations in the observed relationship between energy poverty and well-being across various socioeconomic groups. Practical implications This calls for improvement in the production and distribution of modern energy resources, which have substantial welfare implications. Originality/value This is the first study to measure the relationship between energy poverty and quality of life using multidimensional indices. The findings of this paper have policy implications for the pricing of energy resources and energy access measures.

Energy Poverty and Democratic Values: A European Perspective

This paper explores the complex relationship between energy poverty and the maintenance of democratic values within the European Union (EU), suggesting that energy poverty not only impacts economic stability and health outcomes but also poses significant challenges to democratic engagement and equity. To measure energy poverty, a composite index is developed using the entropy method, which surpasses traditional measures focused solely on access to energy or its developmental implications. To assess the level of democratic governance in EU countries, the voice and accountability index (VEA), which is part of the World Governance Indicators compiled by the World Bank, is utilized. By analyzing EU data from 2006 to 2022, the findings suggest that a 1% improvement in VEA quality, represented by a coefficient of 0.122, is correlated with a notable improvement in the energy poverty index. This suggests that the EU should focus on enhancing transparency and public participation in energy decision-making, along with ensuring accountability in policy implementation. The research also differentiates between full and flawed democracies, noting that tailored approaches are needed. In full democracies, leveraging economic prosperity and trade is crucial due to their significant positive impacts on the energy poverty index. In contrast, in flawed democracies, enhancing governance and accountability is more impactful, as evidenced by a higher coefficient of 0.193. Strengthening legal and regulatory frameworks, improving regulatory quality, and ensuring public engagement in governance could substantially mitigate energy poverty in these contexts. In addition, this paper demonstrates that this relationship is influenced by factors such as income inequality, energy intensity, and trade openness.

Liquefied Petroleum Gas Access and Consumption Expenditure: Measuring Energy Poverty through Wellbeing and Gender Equality in India

Liquefied Petroleum Gas Access and Consumption Expenditure: Measuring Energy Poverty through Wellbeing and Gender Equality in India

Energy poverty assessment: Indicators and implications for developing and developed countries

Energy poverty represents a considerable challenge that is difficult to quantify, monitor, and effectively address through policy measures. Efforts to tackle this problem have proven unsatisfactory for many reasons, including insufficient data on who is experiencing energy poverty to a poor definition of what this concept entails. This study examines methods for measuring energy poverty considering spatial, household preferences, home standards, and cultural differences among countries. The focus is on two commonly used indicators to communicate energy poverty issues at the local, national, and global levels: single indicators and multidimensional indices. The advantages and disadvantages of these indicators will be thoroughly examined. A dedicated study is provided to investigate the mechanism through which energy poverty affects the quality of life. The analysis reveals the limitations of single indicators in capturing the nuances of energy poverty across diverse contexts. Multidimensional indices offer a more comprehensive approach but require careful design and data availability. A framework is proposed for selecting appropriate indicators considering local needs and cultural specificities. By integrating insights from quality-of-life studies, the recommendations guide policymakers in designing effective interventions and targeting resources to maximize the impact on populations experiencing energy poverty.

Can smart energy alleviate energy poverty in China? –Empirical evidence using synthetic control methods

Smart energy plays an important role in alleviating energy poverty in China in the context of the new technological revolution and industrial change. This paper uses China's smart pilot policy as a quasi-natural experiment, employing China's provincial panel data from 2011 to 2022, measuring energy poverty indices based on a projection pursuit evaluation model, and conducting a quasi-natural experiment using a synthetic control method to assess the effect of smart energy on energy poverty and specific mechanisms of action. The study found that smart energy has a specific and significant impact on energy poverty, but the effect differs in different regions depending on the construction cycle and energy endowment. In the mechanism test, smart energy significantly alleviates energy poverty through the mechanisms of improving energy supply capacity, improving energy payment capacity, and improving energy cleanliness. The results of the study provide empirical references for regional solutions to energy poverty and the planning of smart energy construction.

Modeling energy consumption to measure energy poverty in households in Buenos Aires (Argentina), 2017-2018

Modeling energy consumption to measure energy poverty in households in Buenos Aires (Argentina), 2017-2018

Are they Twins or Only Friends? The Redundancy and Complementarity of Energy Poverty Indicators in Italy

A large body of literature has developed numerous unidimensional and multidimensional indicators to identify energy-poor households, also with the aim of targeting public policies. They all have pros and cons and may identify different populations. How do they relate to each other? How should they be used in a country such as Italy where energy poverty has not yet been officially defined? We frame these research questions in a context of general social vulnerability in which several dimensions of poverty intersect. Using SILC data (EU and IT modules) for the period 2004–2015 we compare four widely used unidimensional indicators and provide evidence—for the Italian case—that complementarity among the indicators prevails since the complexity of energy poverty requires a combination of metrics to capture various vulnerabilities. Our results confirm the set of relevant factors affecting the probability of being energy poor which are indicated in the related economics literature, regardless of which indicator is used. They may help tailor policies to tackle the phenomenon. Based on these findings, we strongly support the idea of using a dashboard of different metrics to measure energy poverty to design effective policies.

Unveiling the Implications of Energy Poverty for Educational Attainments in Pakistan: A Multidimensional Analysis

The United Nations' Sustainable Development Goals (SDGs) recognize energy poverty as a significant issue affecting developing and developed countries. Goal 7 of the Sustainable Development Goals (SDG 7) focuses on energy poverty (EP) and aims to achieve universal access to affordable, reliable, sustainable, and modern energy services by 2030. This study examines the relationship between energy poverty and educational attainments in Pakistan using time series data from 1990 to 2020. A multidimensional energy development index (EDI) is constructed to measure energy poverty. By employing robust econometric techniques such as the Johansen cointegration test, fully modified ordinary least square (FMOLS), canonical cointegration regression, and the generalized method of moments (GMM) estimation, this research uncovers empirical findings that offer valuable insights into the crucial role of energy poverty as a determinant of educational attainments. The findings of this study reveal that improvements in energy development (characterized by a decline in energy poverty) and real GDP per capita, significantly enhance school enrollments in Pakistan. Moreover, it is also observed that general poverty and a high pupil-teacher ratio negatively influence educational attainments. These results emphasize that inadequate access to and affordability of energy act as formidable barriers, impeding the educational journey of children and adolescents. These findings also highlight the urgent need to address energy poverty as a paramount policy concern to enhance development outcomes. Policies aimed at improving energy infrastructure and providing reliable and affordable energy sources are crucial to unlocking educational opportunities for more children and enabling them to embark on their educational journeys.

Does Income Affect Climbing the Energy Ladder? A New Utility-Based Approach for Measuring Energy Poverty

Energy poverty measures are gradually becoming less relevant for fast-developing countries, where the energy mix consists of traditional and modern energies. We propose a new approach for measuring energy poverty by modifying the Exact Affine Stone Index (EASI) demand system to include implied disutility of energy use. The disutility arises from the effects of price or income changes and the use of polluting energies. Using data from Vietnam, we found that energy poverty could happen at higher income levels than the level considered in the literature, and higher incomes may not encourage households to climb the energy ladder. However, consuming carbon-intensive fuel does not necessarily mean energy poor.

Fuel or power Africa? The impact of Chinese foreign aid on energy poverty

We examine the impact of Chinese foreign aid on energy poverty in 11 sub-Saharan African countries by matching data on geo-referenced Chinese aid projects with household information from the Demographic and Health Surveys. We use access to clean cooking fuels and electricity to measure energy poverty, focusing on the accessibility dimension. Using difference-in-differences estimations and propensity score matching methods, we find that Chinese aid projects improve access to clean cooking fuels, but not to electricity, in recipient countries' treatment areas. The effect of Chinese aid on energy poverty is heterogeneous across rural and urban areas. Improvements in access to clean cooking fuels have been driven directly and indirectly by Chinese aid projects. Chinese aid can improve access to clean cooking fuels through employment and education.

Gauging energy poverty in developing countries with a composite metric of electricity access

Energy poverty is a significant development issue that is not univocally interpreted. In many parts of the world, people do not have access to modern and reliable energy, which can be a big problem, particularly for vulnerable and developing countries. When vulnerable people do not have access to energy, they will often not be able to get the power they need to improve their lives. In addition, they may not be able to get proper food, education, health, sanitation, or basic needs for daily living. We use interval-based composite indicators and triplex representations of intervals to measure and assess access to electricity in 54 developing countries as a concept approximating relevant aspects of energy poverty. The proposed composite metric is innovative because it accurately quantifies how much electricity is available to people and how resilient and vulnerable people in developing countries are when they lose access to energy. After comparing the different representations, we found that one group of developing countries is more vulnerable to national and international events than the other. However, other countries are more resilient to electricity access problems. Conflicts and wars can impact the index used to measure energy poverty. However, as measured by the index, these factors contribute to poor performance.

A Discussion of Energy Poverty and Energy Injustice in The Case of Texas, U.S.

Insufficient access to modern energy resources is a crucial issue in the development of a country. Plenty of resources were devoted to measuring energy poverty, but the equality of energy access within regions is largely ignored, especially on the county-by-county level with spill-over effect analysis. This paper begins with data related to Texas household demographics and spatial distribution to construct a quantitative measurement of energy burden and energy injustice, in the case of Texas. Moran’s Index and local indicators of spatial correlation (LISA) were utilized to analyze the relationships between energy-burdened counties and their locations. Then, the spatial error model (SEM) was introduced to evaluate the spatial dependence in the error term. A statistically significant result regarding energy injustice and demographic characteristics within Texas was confirmed. The result has crucial implications regarding assessing Texas energy injustice on a county level and recognizing the factors contributing to the energy burden. The methodology and concept can be expanded into similar topics of interest.

Индивидуална оценка на енергийната бедност – възможности и решения

The article presents a proposal for individual assessment of energy poverty through a quantitative model for measuring household energy needs. The assessment contains a demographic and technical component, and is an important part of determining normalized household energy expenditure, as part of an official energy poverty line, in addition to income and energy prices. The expenditure-oriented approach to measuring energy poverty has been proven to be the most suitable for the national specifics in Bulgaria. The energy poverty line is necessary when applying financial schemes for crediting measures for energy efficiency of buildings and heating systems of domestic energy consumers in Bulgaria, as part of a comprehensive mechanism to combat energy poverty.

Assessing the effect of energy poverty on the mental and physical health in China—Evidence from China family panel studies

Energy poverty is a crucial issue faced by countries all around the world, as the largest developing country in the world, China is also experiencing energy poverty problems. In order to explore the health effect of energy poverty in China, this paper first uses the principal component analysis (PCA) to construct a comprehensive index to measure energy poverty, and then adopts the ordinary least square method (OLS), fixed effect model (FE), instrumental variable two-stage least squares (IV-2SLS) regression to study the impact of energy poverty on the physical and mental health of Chinese people based on China Family Panel Studies 2018 (CFPS 2018). The study discovers that energy poverty significantly hampers the mental and physical health of Chinese people, an increase in energy poverty might cause 28.74%、18.69% decrease in mental and physical health respectively. Moreover, this paper further explores the influencing paths of energy poverty by intermediary effect and regulatory effect. It is revealed that in addition to directly affecting physical and mental health, energy poverty also have a negative impact on physical and mental health by affecting the accessibility of a series of resources, such as water and food, reducing the opportunities for physical exercise and increasing medical expenses. However, the impact is restricted by age and family income. Finally, under the national strategy of China, this paper further discusses how to give consideration to the joint implementation of heath and emission reduction strategies, then gives specific policy suggestions based on the results.

Energy poverty assessment in the Belt and Road Initiative countries: based on entropy weight-TOPSIS approach.

The Belt and Road Initiative (BRI) countries are mainly developing countries with severe energy poverty. This study combines the entropy weight and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method to measure energy poverty at the household, enterprise, and national levels in 82 BRI countries. This study aims to investigate and discuss how to encourage BRI countries to develop effective decision-making mechanisms for developing more targeted supply-side solutions to domestic energy poverty. A geographic information system (GIS) is also used to construct spatial distribution maps to assess energy poverty. The findings show that countries in South Asia, Southeast Asia, and North Africa have the highest levels of energy poverty, while countries in West Asia and Europe have the lowest. East Timor, Tonga, and Equatorial Guinea are of the most extremely lowest. The assessment methodology used in this paper focuses not only on the energy poverty faced by households, but also on the overall energy supply and service situation at the enterprise and national levels. These perspectives are likely to influence policy making and help the governments in addressing domestic energy poverty more effectively from the supply side.