Energy Ladder, Decarbonisation and Energy Poverty: The European Union Inside

Zbysław Dobrowolski (), Peter Adamišin, Waldemar Sługocki and Sławomir Kotylak
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Zbysław Dobrowolski: Institute of Economics and Finance, University of Zielona Góra, 65-417 Zielona Góra, Poland
Peter Adamišin: Faculty of Management and Business, University of Prešov, 080 01 Prešov, Slovakia
Waldemar Sługocki: Institute of Economics and Finance, University of Zielona Góra, 65-417 Zielona Góra, Poland
Sławomir Kotylak: Institute of Economics and Finance, University of Zielona Góra, 65-417 Zielona Góra, Poland

Energies, 2025, vol. 18, issue 5, 1-27

Abstract: In the forthcoming decades, the energy sector will confront significant transitions related to climate change, supply stability, and energy poverty. The initial two aspects have undergone thorough scientific analysis, whilst the third has received comparatively less analysis despite its significant impact on the lives of millions. Using a systematic literature review, laws and regulations and document analysis, and based on the assumption of an energy ladder, this study provides an overview of energy poverty and its implications. The research focuses on energy poverty in developed countries and answers whether the European Union’s implemented and planned actions to reduce greenhouse gas emissions cause energy poverty. Based on the Polish case, the study shows that the EU’s scheduled actions aimed to stabilise climate change, although right in intention, require modification because they do not fully consider the significant economic and energy development diversity of the European Union Member States and may increase energy poverty affecting the European inhabitants. The findings show that due to the implementation of the EU Emission Trading System 2 in 2027, transport costs may increase by almost one-third, which will raise the prices of goods and services and affect energy poverty. This study develops the stream of research on energy poverty, modifies the concept of the energy ladder and shows threats resulting from the ETS2 implementation. The paper proposes the avenues of future research.

Keywords: energy ladder; energy transition; decarbonisation; fuel choices; energy poverty; ETS; ETS2 (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: 2025
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