IDEAS home Printed from https://ideas.repec.org/p/diw/diwsop/diw_sp632.html
   My bibliography  Save this paper

Measuring Fuel Poverty: General Considerations and Application to German Household Data

Author

Listed:
  • Peter Heindl

Abstract

Fuel poverty measurement consists of two independent parts: firstly, the definition of an adequate fuel poverty line, and secondly, techniques to measure fuel poverty. This paper reviews options for the definition of fuel poverty lines and techniques for fuel poverty measurement. Based on household data from Germany, figures that would result from different fuel poverty lines are derived. Different fuel poverty lines yield highly different results with respect to which households are identified as fuel poor. Thus, the choice of the fuel poverty line matters decisively for the resulting assessment. Options for fuel poverty measurement and subgroup comparison are discussed.

Suggested Citation

  • Peter Heindl, 2014. "Measuring Fuel Poverty: General Considerations and Application to German Household Data," SOEPpapers on Multidisciplinary Panel Data Research 632, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp632
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.438766.de/diw_sp0632.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Martin Ravallion & Gaurav Datt & Dominique van de Walle, 1991. "Quantifying Absolute Poverty In The Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
    2. Meier, Helena & Rehdanz, Katrin, 2010. "Determinants of residential space heating expenditures in Great Britain," Energy Economics, Elsevier, vol. 32(5), pages 949-959, September.
    3. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 45362, University Library of Munich, Germany.
    4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    5. Healy, John D. & Clinch, J. Peter, 2004. "Quantifying the severity of fuel poverty, its relationship with poor housing and reasons for non-investment in energy-saving measures in Ireland," Energy Policy, Elsevier, vol. 32(2), pages 207-220, January.
    6. Ürge-Vorsatz, Diana & Tirado Herrero, Sergio, 2012. "Building synergies between climate change mitigation and energy poverty alleviation," Energy Policy, Elsevier, vol. 49(C), pages 83-90.
    7. Nesbakken, Runa, 1999. "Price sensitivity of residential energy consumption in Norway," Energy Economics, Elsevier, vol. 21(6), pages 493-515, December.
    8. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    9. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, vol. 56(5), pages 931-945.
    10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    11. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
    12. Liddell, Christine & Morris, Chris & McKenzie, S.J.P. & Rae, Gordon, 2012. "Measuring and monitoring fuel poverty in the UK: National and regional perspectives," Energy Policy, Elsevier, vol. 49(C), pages 27-32.
    13. Moore, Richard, 2012. "Definitions of fuel poverty: Implications for policy," Energy Policy, Elsevier, vol. 49(C), pages 19-26.
    14. Nguyen-Van, Phu, 2010. "Energy consumption and income: A semiparametric panel data analysis," Energy Economics, Elsevier, vol. 32(3), pages 557-563, May.
    15. Karsten Neuhoff & Stefan Bach & Jochen Diekmann & Martin Beznoska & Tarik El-Laboudy, 2013. "Distributional Effects of Energy Transition: Impacts of Renewable Electricity Support in Germany," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    16. Peter C. Reiss & Matthew W. White, 2008. "What changes energy consumption? Prices and public pressures," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 636-663, September.
    17. Achtnicht, Martin & Madlener, Reinhard, 2014. "Factors influencing German house owners' preferences on energy retrofits," Energy Policy, Elsevier, vol. 68(C), pages 254-263.
    18. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    19. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    20. Zheng, Buhong, 1997. "Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
    21. Karsten Neuhoff & Stefan Bach & Jochen Diekmann & Martin Beznoska & Tarik El-Laboudy, 2012. "Steigende EEG-Umlage: unerwünschte Verteilungseffekte können vermindert werden," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 79(41), pages 3-12.
    22. Abrahamse, Wokje & Steg, Linda, 2009. "How do socio-demographic and psychological factors relate to households' direct and indirect energy use and savings?," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 711-720, October.
    23. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    24. Peter C. Reiss & Matthew W. White, 2005. "Household Electricity Demand, Revisited," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 853-883.
    25. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
    26. Walker, Gordon & Day, Rosie, 2012. "Fuel poverty as injustice: Integrating distribution, recognition and procedure in the struggle for affordable warmth," Energy Policy, Elsevier, vol. 49(C), pages 69-75.
    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. Heindl, Peter & Löschel, Andreas, 2015. "Social implications of green growth policies from the perspective of energy sector reform and its impact on households," CAWM Discussion Papers 81, University of Münster, Center of Applied Economic Research Münster (CAWM).
    2. Heindl, Peter & Schuessler, Rudolf, 2015. "Dynamic properties of energy affordability measures," Energy Policy, Elsevier, vol. 86(C), pages 123-132.
    3. Nowak, Daniel & Scheicher, Christoph, 2014. "Considering the extremely poor: Multidimensional poverty measurement for Germany," Discussion Papers in Econometrics and Statistics 02/14, University of Cologne, Institute of Econometrics and Statistics.
    4. 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.
    5. Daniel Nowak & Christoph Scheicher, 2017. "Considering the Extremely Poor: Multidimensional Poverty Measurement for Germany," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 139-162, August.
    6. Alberini, Anna & Gans, Will & Velez-Lopez, Daniel, 2011. "Residential consumption of gas and electricity in the U.S.: The role of prices and income," Energy Economics, Elsevier, vol. 33(5), pages 870-881, September.
    7. Martin Ravallion & Shaohua Chen, 2011. "Weakly Relative Poverty," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1251-1261, November.
    8. Hendrik Schmitz & Reinhard Madlener, 2020. "Heterogeneity in price responsiveness for residential space heating in Germany," Empirical Economics, Springer, vol. 59(5), pages 2255-2281, November.
    9. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    10. ALi Abdel Gadir Ali, "undated". "Poverty in the Arab Region: A Selective Review," API-Working Paper Series 0402, Arab Planning Institute - Kuwait, Information Center.
    11. Kostakis, Ioannis & Lolos, Sarantis & Sardianou, Eleni, 2021. "Residential natural gas demand: Assessing the evidence from Greece using pseudo-panels, 2012–2019," Energy Economics, Elsevier, vol. 99(C).
    12. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.
    13. Vivien Kana Zeumo & Blaise Some & Alexis Tsoukiàs, 2011. "A survey on Multidimensional Poverty Measurement: a Decision Aiding Perspective," Working Papers hal-00875525, HAL.
    14. Suman Seth and Gaston Yalonetzky, 2018. "Assessing Deprivation with Ordinal Variables: Depth Sensitivity and Poverty Aversion," OPHI Working Papers ophiwp123.pdf, Queen Elizabeth House, University of Oxford.
    15. Seth,Suman & Yalonetzky,Gaston, 2020. "Assessing Deprivation with an Ordinal Variable : Theory and Application to Sanitation Deprivation in Bangladesh," Policy Research Working Paper Series 9120, The World Bank.
    16. Longhi, Simonetta, 2015. "Residential energy expenditures and the relevance of changes in household circumstances," Energy Economics, Elsevier, vol. 49(C), pages 440-450.
    17. Ali Abdel Gadir Ali, "undated". "Can the Sudan Reduce Poverty by Half by the Year 2015?," API-Working Paper Series 0304, Arab Planning Institute - Kuwait, Information Center.
    18. Joachim Merz & Tim Rathjen, 2014. "Multidimensional time and income poverty: well-being gap and minimum 2DGAP poverty intensity – German evidence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 555-580, December.
    19. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, Open Access Journal, vol. 13(17), pages 1-21, August.
    20. Kenichi Mizobuchi & Kenji Takeuchi, 2015. "Replacement or Additional Purchase: The Impact of Energy-Efficient Appliances on Household Electricity Saving," Discussion Papers 1520, Graduate School of Economics, Kobe University.

    More about this item

    Keywords

    Fuel poverty; energy poverty; poverty measurement; Energiearmut; Germany;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:diw:diwsop:diw_sp632. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/sodiwde.html .

    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: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/sodiwde.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.