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Why Fuel Poverty?

Author

Listed:
  • Bhattarai, Keshab

    (Business School, University of Hull ,Cottingham Road, HU6 7RX, UK)

Abstract

The National Health Service (NHS) in UK prescribes 210C in the living room and 180C in other rooms for all households but for more than 7.7 percent households cost of heating is above 10 percent of their income and they suffered from coldness related diseases and are in fuel poverty. Raising growth rates of income of vulnerable households, stabilising prices of fuel products and improving fuel efficiency of houses are measure to eliminate fuel poverty and to reduce the excess deaths caused by this. This paper shows how the basic needs of fuel demand can be modelled using the Stone-Geary preferences and how the growth of the economy is related to those preferences and technology of firms over time is analysed with Bellman-Sargent dynamic programming models. Demand and supply analysis of this kind should complement DTI’s methodology on fuel poverty for policy analysis.

Suggested Citation

  • Bhattarai, Keshab, 2010. "Why Fuel Poverty?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 115-123, September.
    • Handle: RePEc:rjr:romjef:v::y:2010:i:3:p:115-123
    as

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    References listed on IDEAS

    as
    1. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-738, September.
    2. Keshab Bhattarai, 2007. "Input–Output and General Equilibrium Models for Hull and Humber Region in England," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(4), pages 473-490, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fuel poverty; Stone Geary Preference; dynamic programming;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection

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