How do energy forms impact energy poverty? An analysis of European degrees of urbanisation

The access that households have to various forms of energy depends on their level of urbanisation, which leads to distinct preferences in the forms of energy they consume. Consequently, different forms of residential energy consumption should have different impacts on energy poverty, when analysed for each degree of urbanisation. Verifying this was the underlying motivation for this study. Thus, it investigates how forms of residential energy consumption (oil, wood/biomass, natural gas, and electricity) impact energy poverty in (a) cities; (b) towns and suburbs; and (c) rural areas. To do so, data from 2005 until 2018 for twelve European countries was analysed using three-panel data sets, one for each urbanisation degree. The results, estimated using Feasible Generalised Least Squares, indicated that, in sparsely populated areas (towns, suburbs, and rural areas), primary energy sources, such as wood/biomass and natural gas alleviate energy poverty. Conversely, in cities, residential electricity consumption has been the key form for decreasing both poverty and energy poverty. The results of this research highlight that energy forms have differing impacts on energy poverty in areas with different levels of urbanisation. Therefore, energy policies should be planned at a disaggregated regional level within countries, and not at a national or European level.