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Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data

Katharina Drescher and Benedikt Janzen

Energy Economics, 2021, vol. 102, issue C

Abstract: We examine the determinants, persistence, and dynamics of energy poverty using seven waves of the German Socio-Economic Panel (GSOEP). Employing a dynamic random effects probit model we find evidence of genuine state dependence effects in energy poverty with households being up to 7.5% more likely to face energy poverty if they were energy poor in the previous period. Energy poverty is associated with household composition, educational attainment, labour force status, energy-inefficient housing, and the heating system in place. We document common predictors of perceived and objectively measured energy poverty. Our results suggest that energy poverty in Germany is mostly a transitory state, with 78% of the energy poor households in our sample only temporarily facing energy poverty.

Keywords: Energy poverty; Fuel poverty; Energy affordability; Dynamic random effects probit (search for similar items in EconPapers)
JEL-codes: D63 I32 Q48 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:102:y:2021:i:c:s014098832100325x

DOI: 10.1016/j.eneco.2021.105433

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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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