IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i20p3988-d278459.html

Energy Poverty and Life Satisfaction: Structural Mechanisms and Their Implications

Author

Listed:
  • Elena Druică

    (Department of Economics and Administration, University of Bucharest, Queen Elisabeth Avenue 4-12, Bucharest 030018, Romania)

  • Zizi Goschin

    (Institute of National Economy, Bucharest University of Economic Studies, Piața Romană 6, Calea 13 Septembrie 13, Bucharest 010374, Romania)

  • Rodica Ianole-Călin

    (Department of Economics and Administration, University of Bucharest, Queen Elisabeth Avenue 4-12, Bucharest 030018, Romania)

Abstract

This paper investigates the distinct mechanisms through which energy poverty is linked to life satisfaction, via health status and one’s satisfaction with one’s own socioeconomic status, using data from the Life in Transition survey. Our sample contains 19,598 individuals from 11 former communist states located in Central and Eastern Europe, and two developed countries for comparison. We estimated a partial least squared–path model and found that both health status and socioeconomic status are relevant mediators. Our results also indicate that gender moderates the relation between health status and life satisfaction. Energy poverty has a low contribution to health status but a larger contribution to satisfaction with socioeconomic status, thus indicating that interventions on energy poverty may not greatly improve the level of health, but can have an influence on how people feel about their life. The contribution of our paper is twofold. On the one side, we continue to consolidate the existing link between energy poverty and self-reported health status with a new focus on the Central and Eastern European countries; on another side, we propose a theoretical framework expansion by including totally novel factors to be analyzed in this context: satisfaction with socioeconomic status, economic environment improvement, and intolerance.

Suggested Citation

  • Elena Druică & Zizi Goschin & Rodica Ianole-Călin, 2019. "Energy Poverty and Life Satisfaction: Structural Mechanisms and Their Implications," Energies, MDPI, vol. 12(20), pages 1-20, October.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3988-:d:278459
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/20/3988/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/20/3988/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lund, Crick & Breen, Alison & Flisher, Alan J. & Kakuma, Ritsuko & Corrigall, Joanne & Joska, John A. & Swartz, Leslie & Patel, Vikram, 2010. "Poverty and common mental disorders in low and middle income countries: A systematic review," Social Science & Medicine, Elsevier, vol. 71(3), pages 517-528, August.
    2. Philipp Biermann, 2016. "How Fuel Poverty Affects Subjective Well-Being: Panel Evidence from Germany," Working Papers V-395-16, University of Oldenburg, Department of Economics, revised Oct 2016.
    3. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
    4. Carlo Andrea Bollino & Fabrizio Botti, 2017. "Energy Poverty in Europe: A Multidimensional Approach," PSL Quarterly Review, Economia civile, vol. 70(283), pages 449-472.
    5. Judit Mendoza Aguilar & Francisco J. Ramos-Real & Alfredo J. Ramírez-Díaz, 2019. "Improving Indicators for Comparing Energy Poverty in the Canary Islands and Spain," Energies, MDPI, vol. 12(11), pages 1-15, June.
    6. John Hills, 2012. "Final report of the Hills Independent Fuel Poverty Review: Getting the Measure of Fuel Poverty," CASE Reports casereport72, Centre for Analysis of Social Exclusion, LSE.
    7. Crowley, Frank & Walsh, Edel, 2018. "How important are Personal Ties, Trust and Tolerance for Life Satisfaction in Europe?," SRERC Working Paper Series SRERCWP2018-1, University College Cork (UCC), Spatial and Regional Economic Research Centre (SRERC).
    8. Stefan Bouzarovski, 2014. "Energy poverty in the European Union: landscapes of vulnerability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(3), pages 276-289, May.
    9. Stefan Bouzarovski & Saska Petrova & Sergio Tirado-Herrero, 2014. "From Fuel Poverty to Energy Vulnerability: The Importance of Services, Needs and Practices," SPRU Working Paper Series 2014-25, SPRU - Science Policy Research Unit, University of Sussex Business School.
    10. Oakes, J. Michael & Rossi, Peter H., 2003. "The measurement of SES in health research: current practice and steps toward a new approach," Social Science & Medicine, Elsevier, vol. 56(4), pages 769-784, February.
    11. Rodriguez-Alvarez, Ana & Orea, Luis & Jamasb, Tooraj, 2019. "Fuel poverty and Well-Being:A consumer theory and stochastic frontier approach," Energy Policy, Elsevier, vol. 131(C), pages 22-32.
    12. Ed Diener & Eunkook Suh, 1997. "Measuring Quality Of Life: Economic, Social, And Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 40(1), pages 189-216, January.
    13. Vemuri, Amanda W. & Costanza, Robert, 2006. "The role of human, social, built, and natural capital in explaining life satisfaction at the country level: Toward a National Well-Being Index (NWI)," Ecological Economics, Elsevier, vol. 58(1), pages 119-133, June.
    14. Thomson, Harriet & Snell, Carolyn, 2013. "Quantifying the prevalence of fuel poverty across the European Union," Energy Policy, Elsevier, vol. 52(C), pages 563-572.
    15. Soytas, Ugur & Sari, Ramazan, 2009. "Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member," Ecological Economics, Elsevier, vol. 68(6), pages 1667-1675, April.
    16. Max Haller & Markus Hadler, 2006. "How Social Relations and Structures can Produce Happiness and Unhappiness: An International Comparative Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 75(2), pages 169-216, January.
    17. Mihaela Simionescu & Yuriy Bilan & Emília Krajňáková & Dalia Streimikiene & Stanisław Gędek, 2019. "Renewable Energy in the Electricity Sector and GDP per Capita in the European Union," Energies, MDPI, vol. 12(13), pages 1-15, June.
    18. Sonja C. Kassenboehmer & John P. Haisken‐DeNew, 2009. "You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction," Economic Journal, Royal Economic Society, vol. 119(536), pages 448-462, March.
    19. repec:qeh:ophiwp:ophiwp042 is not listed on IDEAS
    20. Brendan Baird & Richard Lucas & M. Donnellan, 2010. "Life Satisfaction Across the Lifespan: Findings from Two Nationally Representative Panel Studies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(2), pages 183-203, November.
    21. Petri Böckerman & Pekka Ilmakunnas, 2009. "Unemployment and self‐assessed health: evidence from panel data," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 161-179, February.
    22. Drydakis, Nick, 2015. "The effect of unemployment on self-reported health and mental health in Greece from 2008 to 2013: A longitudinal study before and during the financial crisis," Social Science & Medicine, Elsevier, vol. 128(C), pages 43-51.
    23. Omer, Abdeen Mustafa, 2008. "Energy, environment and sustainable development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(9), pages 2265-2300, December.
    24. Stefan Buzar, 2007. "When Homes Become Prisons: The Relational Spaces of Postsocialist Energy Poverty," Environment and Planning A, , vol. 39(8), pages 1908-1925, August.
    25. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Investigating the Patterns and Determinants of Life Satisfaction in Germany Following Reunification," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    26. Liddell, Christine & Morris, Chris, 2010. "Fuel poverty and human health: A review of recent evidence," Energy Policy, Elsevier, vol. 38(6), pages 2987-2997, June.
    27. repec:aen:journl:ej38-3-welsch is not listed on IDEAS
    28. Inaba, Yoji & Wada, Yuri & Ichida, Yukinobu & Nishikawa, Masashi, 2015. "Which part of community social capital is related to life satisfaction and self-rated health? A multilevel analysis based on a nationwide mail survey in Japan," Social Science & Medicine, Elsevier, vol. 142(C), pages 169-182.
    29. repec:dau:papers:123456789/14815 is not listed on IDEAS
    30. Hindman Persson, Therése, 2001. "Women's Health Choices and the Effects on Child Health," Working Papers 2001:7, Lund University, Department of Economics, revised 21 Jan 2002.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).
    2. Banerjee, Rajabrata & Mishra, Vinod & Maruta, Admasu Asfaw, 2021. "Energy poverty, health and education outcomes: Evidence from the developing world," Energy Economics, Elsevier, vol. 101(C).
    3. Rodriguez-Alvarez, Ana & Llorca, Manuel & Jamasb, Tooraj, 2021. "Alleviating energy poverty in Europe: Front-runners and laggards," Energy Economics, Elsevier, vol. 103(C).
    4. Roberts, Deborah & Vera-Toscano, Esperanza & Phimister, Euan, 2015. "Fuel poverty in the UK: Is there a difference between rural and urban areas?," Energy Policy, Elsevier, vol. 87(C), pages 216-223.
    5. Llorca, Manuel & Rodriguez-Alvarez, Ana & Jamasb, Tooraj, 2020. "Objective vs. subjective fuel poverty and self-assessed health," Energy Economics, Elsevier, vol. 87(C).
    6. Chiara Grazini, 2023. "La poverta' energetica come privazione delle capacita' (Energy poverty as capabilities deprivation)," Moneta e Credito, Economia civile, vol. 76(301), pages 3-25.
    7. Chiara Certomà & Filippo Corsini & Marina Di Giacomo & Marco Guerrazzi, 2023. "Beyond Income and Inequality: The Role of Socio-political Factors for Alleviating Energy Poverty in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 167-208, September.
    8. Igawa, Moegi & Piao, Xiangdan & Managi, Shunsuke, 2022. "The impact of cooling energy needs on subjective well-being: Evidence from Japan," Ecological Economics, Elsevier, vol. 198(C).
    9. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    10. Bezerra, Paula & Cruz, Talita & Mazzone, Antonella & Lucena, André F.P. & De Cian, Enrica & Schaeffer, Roberto, 2022. "The multidimensionality of energy poverty in Brazil: A historical analysis," Energy Policy, Elsevier, vol. 171(C).
    11. Chadi, Adrian & Hetschko, Clemens, 2025. "Income or leisure? On the hidden benefits of (un)employment," European Economic Review, Elsevier, vol. 171(C).
    12. Caitlin Robinson & Stefan Bouzarovski & Sarah Lindley, 2018. "Underrepresenting neighbourhood vulnerabilities? The measurement of fuel poverty in England," Environment and Planning A, , vol. 50(5), pages 1109-1127, August.
    13. Jun Zhang & Yuang He & Jing Zhang, 2022. "Energy Poverty and Depression in Rural China: Evidence from the Quantile Regression Approach," IJERPH, MDPI, vol. 19(2), pages 1-21, January.
    14. Meltem Ucal & Simge Günay, 2022. "Household Happiness and Fuel Poverty: a Cross-Sectional Analysis on Turkey," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(1), pages 391-420, February.
    15. Igawa, Moegi & Managi, Shunsuke, 2022. "Energy poverty and income inequality: An economic analysis of 37 countries," Applied Energy, Elsevier, vol. 306(PB).
    16. Kahouli, Sondès & Okushima, Shinichiro, 2021. "Regional energy poverty reevaluated: A direct measurement approach applied to France and Japan," Energy Economics, Elsevier, vol. 102(C).
    17. Awaworyi Churchill, Sefa & Smyth, Russell, 2021. "Energy poverty and health: Panel data evidence from Australia," Energy Economics, Elsevier, vol. 97(C).
    18. Carlo Andrea Bollino & Fabrizio Botti, 2017. "Energy Poverty in Europe: A Multidimensional Approach," PSL Quarterly Review, Economia civile, vol. 70(283), pages 449-472.
    19. Buchner, Martin & Rehm, Miriam, 2025. "Energy poverty and health: Micro-level evidence from Germany," Energy Economics, Elsevier, vol. 145(C).
    20. Siksnelyte-Butkiene, Indre & Streimikiene, Dalia & Balezentis, Tomas, 2022. "Addressing sustainability issues in transition to carbon-neutral sustainable society with multi-criteria analysis," Energy, Elsevier, vol. 254(PA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3988-:d:278459. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.