Energy Poverty and Democratic Values: A European Perspective

Aleksy Kwilinski (), Oleksii Lyulyov and Tetyana Pimonenko
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Aleksy Kwilinski: Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
Oleksii Lyulyov: Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
Tetyana Pimonenko: Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland

Energies, 2024, vol. 17, issue 12, 1-23

Abstract: 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.

Keywords: sustainable development; energy efficiency; energy price; democracy; energy poverty; European Union (EU) (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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