Housing, Energy Cost, and the Poor – Counteracting Effects in Germany’s Housing Allowance Program
AbstractAdequate housing and affordable warmth are essential human needs, the lack of which may seriously harm people’s health. Germany provides an allowance to low-income households, covering the housing as well as the space heating cost, to protect people from the consequences of poor housing conditions and fuel poverty. In order to limit public expenditures, payment recipients are required to choose low-cost dwellings, with the consequence that they probably occupy flats with a poor thermal performance. Recipients are thus likely to have a higher energy consumption and energy expenditures. Using a large data set of German households, this paper demonstrates that this counteracting effect is of negligible magnitude. Yet, from an ecological perspective, the allowance scheme creates distorted incentives and should be reformed.
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Bibliographic InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0110.
Length: 20 pages
Date of creation: May 2009
Date of revision:
Other versions of this item:
- Grösche, Peter, 2010. "Housing, energy cost, and the poor: Counteracting effects in Germany's housing allowance program," Energy Policy, Elsevier, vol. 38(1), pages 93-98, January.
- Peter Grösche, 2009. "Housing, Energy Cost, and the Poor: Counteracting Effects in Germany's Housing Allowance Program," SOEPpapers on Multidisciplinary Panel Data Research 202, DIW Berlin, The German Socio-Economic Panel (SOEP).
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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Ruhr Economic Papers
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