Measuring Fuel Poverty in France: Which Households Are the Most Vulnerable?

Little empirical research has been undertaken on fuel poverty in France. Fuel poverty can be measured in a number of ways; therefore we analyze the impact of three different measurement approaches on the extent of fuel poverty and the composition of the fuel poor households in France. Then, we study another aspect of fuel poverty that has been covered less frequently in literature. That is, identifying households that are at risk of falling below the poverty line specifically because of high fuel costs. These households can be classified as vulnerable in the sense that they are a priori non-poor before the fuel bills but a marginal increase in energy prices is enough to make them slip below the threshold . Such an approach allows us to identify the impact of high fuel costs on the margins of poverty. We conduct descriptive statistics in order to quantify and identify fuel poor households under the three approaches. Then we estimate a log-log regression model to characterize vulnerable households that are pushed into poverty because of fuel costs. Using a log log model allows us to verify whether the patterns commonly seen across fuel poverty are actually associated with single characteristics or a combination of several characteristics The three measurement approaches selected led to contrasting results in terms of the extent of fuel poverty and the composition of the fuel poor. Moreover, the three approaches identify distinct types of fuel poor households. The econometric study suggests that living alone is associated with a high probability of falling into fuel poverty. Moreover, retired people living alone are significantly exposed to fuel poverty. Being a homeowner and highly educated is associated with lower exposure to fuel poverty. The heating system equipment and the type of energy used for cooking are key elements that influence the probability of falling into fuel poverty. Using an individual boiler and cooking with butane/propane are associated with a high probability of being fuel poor, while collective boilers, district heating systems and cooking with city gas (natural gas) seem to protect against fuel poverty. Moreover, a home’s low energy performance is a significant fuel poverty factor. Only housing built after 1974 (after the first thermal regulation in France) decreases the exposure to fuel poverty.