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Fuel Poverty and Health: a Panel Data Analysis

Romanic Baudu, Dorothée Charlier () and Bérangère Legendre ()
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Romanic Baudu: Université Savoie Mont-Blanc

No 2020.04, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: Protecting and improving health and mitigation of climate change have a shared agenda. In this paper, we contribute to the literature by assessing the link between fuel poverty and health over a lengthy recent period. Using dynamic probit models, we examine the influence of fuel poverty on health. We control for state dependency of health as we regard health status to be closely related to previous health trajectories. Considering that unobserved heterogeneity might influence health status and fuel poverty simultaneously, we have corrected for the endogeneity bias that could affect our results. We conclude that being fuel-poor increases the risk of bad health by slightly more than a factor of 7 for those whose health is already poor and by 1.82 for those in good health. For policy makers, combatting fuel poverty reduces sources of discomfort which might also severely affect the health of a dwelling's inhabitants.

Keywords: Fuel Poverty; Health; Dynamic Probit; Panel dataset (search for similar items in EconPapers)
JEL-codes: C33 I14 Q41 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2020-02
New Economics Papers: this item is included in nep-ene
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