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Unveiling underconsumption of water and electricity services at the bottom of the income distribution

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  • Teotónio, C.
  • Martins, R.
  • Antunes, M.
  • Quintal, C.

Abstract

Access to water and energy services crucially depends on these services' affordability, which is commonly assessed by computing the burden of actual utilities' expenditures in relation to households’ income and then comparing it to a reference threshold. However, this monetary indicator overlooks quantities consumed. We estimate quantities underlying expenditures on water and electricity, combining this information with the burden approach, with special emphasis on low-income households. Results reveal situations of households whose affordability ratios are low but with underconsumption signs (hidden unaffordability) and families that despite having high ratios, still suffer from underconsumption. Problems are more acute for the poorest families.

Suggested Citation

  • Teotónio, C. & Martins, R. & Antunes, M. & Quintal, C., 2023. "Unveiling underconsumption of water and electricity services at the bottom of the income distribution," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s095717872300084x
    DOI: 10.1016/j.jup.2023.101572
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    References listed on IDEAS

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    1. Antunes, Micaela & Teotónio, Carla & Quintal, Carlota & Martins, Rita, 2023. "Energy affordability across and within 26 European countries: Insights into the prevalence and depth of problems using microeconomic data," Energy Economics, Elsevier, vol. 127(PA).

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