Measuring energy poverty in Poland with the Multidimensional Energy Poverty Index

Stefan Bouzarovski, Aneta Kie³czewska, Piotr Lewandowski and Jakub Soko³owski
Authors registered in the RePEc Author Service: Jakub Sokolowski and Aneta Kiełczewska

No 07/2019, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: Energy poverty is a complex problem that is generally caused by having a low income, having high energy costs, and/or living in a home with low energy efficiency. Various indicators capture these factors, but there is no consensus among researchers on which is the best one, or on how to combine them. Thus, poverty mapping and policy planning would benefit from having access to a unitary index of poverty. We have created a multidimensional energy poverty index using the methodology proposed by Alkire and Foster (2008). The index accounts for five dimensions of energy deprivation: two objective indicators of “low income, high costs” and “high share of energy expenditure in income”, as well as three subjective indicators of “inability to keep the home adequately warm”, “presence of leaks, damp, or rot” and “difficulties paying utility bills”. We define households as poor if at least two forms of deprivation are present. We apply our index to Poland using Household Budget Survey data. We find that in 2017, 10% of households in Poland suffered from multidimensional energy poverty, and that about half of these households were also income-poor. Households living in buildings built before 1946, households living in rural areas, and households that were dependent on retirement and disability pensions or on unearned sources of income were at especially high risk of energy poverty.

Keywords: energy poverty; multidimensional poverty index; Alkire-Foster method (search for similar items in EconPapers)
JEL-codes: I32 Q40 R29 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2019-08
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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