TY - JOUR
T1 - Juggling the basics
T2 - How much does an income increase affect energy spending of low-income households in England?
AU - Galvin, Ray
AU - Sunikka-Blank, Minna
AU - Croon, Tijn
PY - 2024
Y1 - 2024
N2 - European governments have deployed targeted and untargeted financial support to protect vulnerable households from the impacts of the recent energy crisis. However, there is little knowledge of income elasticity of energy expenditure among households experiencing energy poverty. We therefore examine the link between energy expenditure and household income levels, considering a spectrum of factors including energy poverty status, energy efficiency of homes, and socio-demographics. We use England's official energy poverty definition, ‘Low-income, low-energy-efficiency’, and analyse the government's ‘Fuel Poverty Dataset’ from 2019. We find that, for all income groups, by far the greatest impact on energy expenditure is the dwelling's energy-efficiency rating, followed by floor area. An increase in income has negligible effects on energy expenditure for all income groups, but greatest for those in energy poverty, suggesting that even though most of their energy-oriented financial support is used for other pressing needs, this still offers some relief from energy poverty. We conclude that energy-efficiency improvements in homes would yield the most substantial and enduring financial benefits for these households, highlighting the need for targeted retrofitting policies. Additionally, older homeowners in energy poverty may need help to move into smaller, energy-efficient homes that are less expensive to heat.
AB - European governments have deployed targeted and untargeted financial support to protect vulnerable households from the impacts of the recent energy crisis. However, there is little knowledge of income elasticity of energy expenditure among households experiencing energy poverty. We therefore examine the link between energy expenditure and household income levels, considering a spectrum of factors including energy poverty status, energy efficiency of homes, and socio-demographics. We use England's official energy poverty definition, ‘Low-income, low-energy-efficiency’, and analyse the government's ‘Fuel Poverty Dataset’ from 2019. We find that, for all income groups, by far the greatest impact on energy expenditure is the dwelling's energy-efficiency rating, followed by floor area. An increase in income has negligible effects on energy expenditure for all income groups, but greatest for those in energy poverty, suggesting that even though most of their energy-oriented financial support is used for other pressing needs, this still offers some relief from energy poverty. We conclude that energy-efficiency improvements in homes would yield the most substantial and enduring financial benefits for these households, highlighting the need for targeted retrofitting policies. Additionally, older homeowners in energy poverty may need help to move into smaller, energy-efficient homes that are less expensive to heat.
KW - Ecosocial policy
KW - Energy expenditure
KW - Energy poverty
KW - English Housing Survey
KW - Income elasticity
KW - Low income
UR - http://www.scopus.com/inward/record.url?scp=85204047540&partnerID=8YFLogxK
U2 - 10.1016/j.erss.2024.103766
DO - 10.1016/j.erss.2024.103766
M3 - Article
AN - SCOPUS:85204047540
SN - 2214-6296
VL - 118
JO - Energy Research and Social Science
JF - Energy Research and Social Science
M1 - 103766
ER -