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Australia's gambling epidemic and energy poverty

Lisa Farrell () and Jane Fry

Energy Economics, 2021, vol. 97, issue C

Abstract: Energy poverty is a growing concern across many countries due to rising energy costs. Energy affordability is essential for households to be able to pay their bills and adequately heat their homes. Here we consider the relationship between energy poverty and gambling. Problem gambling is an increasing societal issue in many countries. Gambling is addictive for many players and at its extreme excessive gambling consumption can lead to multiple economic and social harms. One domain of huge importance is the financial hardship that gambling can create. We utilise the Household, Income and Laboure Dynamics in Australia (HILDA) data to investigate if problem gambling is a driver of energy poverty. We employ a range of energy poverty measures and gambling behaviour proxies. Our findings show subjective measures of energy poverty are positively associated with gambling expenditure. This finding captures the negative impacts of excessive gambling on an individual's ability to pay their energy bills and heat their homes.

Keywords: Gambling; Energy poverty; Instrumental variables (search for similar items in EconPapers)
JEL-codes: D12 I31 I32 Q41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:97:y:2021:i:c:s0140988321001237

DOI: 10.1016/j.eneco.2021.105218

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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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