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Measuring energy poverty in South Africa based on household required energy consumption

Yuxiang Ye and Steven Koch

Energy Economics, 2021, vol. 103, issue C

Abstract: This study incorporates household energy needs into Foster–Greer–Thorbecke (FGT) based poverty measures to examine energy poverty in South Africa. Our household-specific energy poverty line is founded on the application of semiparametric estimation of energy expenditure shares that are used to determine a household energy equivalence scale and, thus, the household specific required energy consumption level or poverty line. We find that headcount energy poverty is extensive, exceeding 50%, as is the gap and the severity of energy poverty. Decomposition results suggest that energy poverty rates decrease with income, and lower income groups contribute more to total poverty than higher income groups across all the three poverty indexes. Although our poverty rates are determined by the choices we have made, the model is flexible enough to allow for assumptions that differ from ours, and we provide a useful sensitivity analysis for further understanding.

Keywords: Energy poverty; Required energy consumption; Foster–Greer–Thorbecke poverty measures; Developing country (search for similar items in EconPapers)
JEL-codes: Q40 Q41 Q42 Q48 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:103:y:2021:i:c:s014098832100428x

DOI: 10.1016/j.eneco.2021.105553

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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