IDEAS home Printed from https://ideas.repec.org/p/fae/ppaper/2016.06.html
   My bibliography  Save this paper

Fuel Poverty: A Composite Index Approach

Author

Listed:
  • Dorothée Charlier

    () (University of Montpellier)

  • Bérangère Legendre

    () (IAE Savoie Mont-Blanc, IREGE)

Abstract

Although fuel poverty is an increasingly serious problem across countries, it has not been well defined or measured in the literature. Currently, an objective measure that takes into account monetary constraints, poor energy efficiency of the dwelling and heating restrictions does not exist. Fuel poverty has been mainly treated as a problem of monetary poverty. However, fuel-impoverished households may differ from those with monetary poverty. Thus, this paper provides a fuel poverty index that takes into account all dimensions of the definition. This index is calculated using objective measures such as disposable income to account for monetary constraints, energy consumption as a measure of energy efficiency and indoor temperature to capture heating restrictions.

Suggested Citation

  • Dorothée Charlier & Bérangère Legendre, 2016. "Fuel Poverty: A Composite Index Approach," Policy Papers 2016.06, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:ppaper:2016.06
    as

    Download full text from publisher

    File URL: http://faere.fr/pub/PolicyPapers/Charlier_Legendre_FAERE_PP2016.06.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brunner, Karl-Michael & Spitzer, Markus & Christanell, Anja, 2012. "Experiencing fuel poverty. Coping strategies of low-income households in Vienna/Austria," Energy Policy, Elsevier, vol. 49(C), pages 53-59.
    2. Euan Phimister, Esperanza Vera-Toscano and Deborah Roberts, 2015. "The Dynamics of Energy Poverty: Evidence from Spain," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    3. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    4. Legendre, Bérangère & Ricci, Olivia, 2015. "Measuring fuel poverty in France: Which households are the most fuel vulnerable?," Energy Economics, Elsevier, vol. 49(C), pages 620-628.
    5. Ormandy, David & Ezratty, Véronique, 2012. "Health and thermal comfort: From WHO guidance to housing strategies," Energy Policy, Elsevier, vol. 49(C), pages 116-121.
    6. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.
    7. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-738, September.
    8. Fatih Birol, 2007. "Energy Economics: A Place for Energy Poverty in the Agenda?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-6.
    9. Michael Parti & Cynthia Parti, 1980. "The Total and Appliance-Specific Conditional Demand for Electricity in the Household Sector," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 309-321, Spring.
    10. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
    11. Nesbakken, Runa, 1999. "Price sensitivity of residential energy consumption in Norway," Energy Economics, Elsevier, vol. 21(6), pages 493-515, December.
    12. Thomson, Harriet & Snell, Carolyn, 2013. "Quantifying the prevalence of fuel poverty across the European Union," Energy Policy, Elsevier, vol. 52(C), pages 563-572.
    13. Moore, Richard, 2012. "Definitions of fuel poverty: Implications for policy," Energy Policy, Elsevier, vol. 49(C), pages 19-26.
    14. Bouzarovski, Stefan & Petrova, Saska & Sarlamanov, Robert, 2012. "Energy poverty policies in the EU: A critical perspective," Energy Policy, Elsevier, vol. 49(C), pages 76-82.
    15. Estiri, Hossein, 2014. "Building and household X-factors and energy consumption at the residential sector," Energy Economics, Elsevier, vol. 43(C), pages 178-184.
    16. repec:aen:journl:eeep4_1_phimister is not listed on IDEAS
    17. repec:dau:papers:123456789/14815 is not listed on IDEAS
    18. Dubois, Ute, 2012. "From targeting to implementation: The role of identification of fuel poor households," Energy Policy, Elsevier, vol. 49(C), pages 107-115.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Llorca, Manuel & Rodriguez-Alvarez, Ana & Jamasb, Tooraj, 2020. "Objective vs. subjective fuel poverty and self-assessed health," Energy Economics, Elsevier, vol. 87(C).
    2. Kelly, J. Andrew & Clinch, J. Peter & Kelleher, L. & Shahab, S., 2020. "Enabling a just transition: A composite indicator for assessing home-heating energy-poverty risk and the impact of environmental policy measures," Energy Policy, Elsevier, vol. 146(C).
    3. 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.
    4. Florian Fizaine & Sondès Kahouli, 2018. "On the power of indicators: how the choice of the fuel poverty measure affects the identification of the target population," Policy Papers 2018.01, FAERE - French Association of Environmental and Resource Economists.

    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. Dorothee Charlier and Sondes Kahouli, 2019. "From Residential Energy Demand to Fuel Poverty: Income-induced Non-linearities in the Reactions of Households to Energy Price Fluctuations," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    2. Dorothee Charlier and Berangere Legendre, 2019. "A Multidimensional Approach to Measuring Fuel Poverty," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    3. Marlena Piekut, 2020. "Patterns of Energy Consumption in Polish One-Person Households," Energies, MDPI, Open Access Journal, vol. 13(21), pages 1-31, October.
    4. Fabbri, Kristian, 2015. "Building and fuel poverty, an index to measure fuel poverty: An Italian case study," Energy, Elsevier, vol. 89(C), pages 244-258.
    5. 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.
    6. Llorca, Manuel & Rodriguez-Alvarez, Ana & Jamasb, Tooraj, 2020. "Objective vs. subjective fuel poverty and self-assessed health," Energy Economics, Elsevier, vol. 87(C).
    7. Okushima, Shinichiro, 2017. "Gauging energy poverty: A multidimensional approach," Energy, Elsevier, vol. 137(C), pages 1159-1166.
    8. Hache, Emmanuel & Leboullenger, Déborah & Mignon, Valérie, 2017. "Beyond average energy consumption in the French residential housing market: A household classification approach," Energy Policy, Elsevier, vol. 107(C), pages 82-95.
    9. Dorothée Charlier & Sondès Kahouli, 2018. "Fuel poverty and residential energy demand: how fuel-poor households react to energy price fluctuations," Post-Print halshs-01957771, HAL.
    10. Salomé Bakaloglou and Dorothée Charlier, 2019. "Energy Consumption in the French Residential Sector: How Much do Individual Preferences Matter?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    11. repec:gam:jsusta:v:8:y:2016:i:5:p:483:d:70173 is not listed on IDEAS
    12. Okushima, Shinichiro, 2016. "Measuring energy poverty in Japan, 2004–2013," Energy Policy, Elsevier, vol. 98(C), pages 557-564.
    13. Anna Risch & Claire Salmon, 2017. "What matters in residential energy consumption: evidence from France," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 40(1/2), pages 79-116.
    14. Alexandru Maxim & Costică Mihai & Constantin-Marius Apostoaie & Cristian Popescu & Costel Istrate & Ionel Bostan, 2016. "Implications and Measurement of Energy Poverty across the European Union," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-20, May.
    15. Dorothée CHARLIER & Mouez FODHA & Djamel KIRAT, 2021. "CO2 Emissions from the Residential Sector in Europe: Some Insights form a Country-Level Assessment," LEO Working Papers / DR LEO 2849, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    16. Euan Phimister, Esperanza Vera-Toscano and Deborah Roberts, 2015. "The Dynamics of Energy Poverty: Evidence from Spain," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    17. Romero, José Carlos & Linares, Pedro & López, Xiral, 2018. "The policy implications of energy poverty indicators," Energy Policy, Elsevier, vol. 115(C), pages 98-108.
    18. Bouzarovski, Stefan & Simcock, Neil, 2017. "Spatializing energy justice," Energy Policy, Elsevier, vol. 107(C), pages 640-648.
    19. Aristondo, Oihana & Onaindia, Eneritz, 2018. "Inequality of energy poverty between groups in Spain," Energy, Elsevier, vol. 153(C), pages 431-442.
    20. Dorothée Charlier & Anna Risch & Claire Salmon, 2016. "Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone?," Policy Papers 2016.01, FAERE - French Association of Environmental and Resource Economists.
    21. Berry, Audrey, 2019. "The distributional effects of a carbon tax and its impact on fuel poverty: A microsimulation study in the French context," Energy Policy, Elsevier, vol. 124(C), pages 81-94.

    More about this item

    Keywords

    Fuel Poverty; Matching Method; Composite indicator; Heating restriction; Energy efficiency;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

    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:fae:ppaper:2016.06. 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: (Mireille Chiroleu-Assouline). General contact details of provider: https://edirc.repec.org/data/faereea.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 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.

    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.