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Evaluating the Impact of Energy Poverty in a Multidimensional Setting

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  • Erica Delugas
  • Rinaldo Brau

Abstract

We study the relationship between energy poverty and subjective well-being by combining objective and subjective indicators in a multidimensional energy poverty index (MEPI). Using the Italian release of the European Survey on Income and Living Conditions, we first assess the identification power of this index vis-a-vis standard ’affordability’ indicators. Subsequently, we use the MEPI in a simultaneous bivariate ordered probit model accounting for the endogeneity between subjective well-being and energy poverty arising from considering subjective indicators. We find a clear additional role by the subjective indicator in the identification of the energy-poor and a relatively low overlapping degree between MEPI and affordability measures. Likewise, econometric estimations detect sizeable and statistically significant negative effects on life satisfaction as the severity level of the MEPI rises. In contrast, virtually no effects are found with affordability indicators. The impact is substantially smaller when the MEPI only considers the subset of objective indicators.

Suggested Citation

  • Erica Delugas & Rinaldo Brau, 2021. "Evaluating the Impact of Energy Poverty in a Multidimensional Setting," The Energy Journal, , vol. 42(1), pages 39-66, January.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:1:p:39-66
    DOI: 10.5547/01956574.42.1.edel
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    References listed on IDEAS

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    Cited by:

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    2. Elizabeth Nsenkyire & Jacob Nunoo & Joshua Sebu & Richard Kwabena Nkrumah & Princella Amankwanor, 2024. "Multidimensional Energy Poverty in West Africa: Implication for Women’s Subjective Well-being and Cognitive Health," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(3), pages 859-880, June.
    3. María del Carmen Pérez-Peña & José Ruiz-Chico & Mercedes Jiménez-García & Antonio Rafael Peña-Sánchez, 2026. "The Economic Impact of Perceived Energy Poverty: A Population-level Analysis and its Relationship with the SDGs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 5541-5569, April.
    4. Rossella Bardazzi & Luca Bortolotti & Maria Grazia Pazienza, 2024. "Are they Twins or Only Friends? The Redundancy and Complementarity of Energy Poverty Indicators in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(2), pages 585-623, July.

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