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Measuring energy poverty in Poland with the Multidimensional Energy Poverty Index

Author

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  • Stefan Bouzarovski
  • Aneta Kie³czewska
  • Piotr Lewandowski
  • Jakub Soko³owski

Abstract

Energy poverty is a complex problem that is generally caused by having a low income, having high energy costs, and/or living in a home with low energy efficiency. Various indicators capture these factors, but there is no consensus among researchers on which is the best one, or on how to combine them. Thus, poverty mapping and policy planning would benefit from having access to a unitary index of poverty. We have created a multidimensional energy poverty index using the methodology proposed by Alkire and Foster (2008). The index accounts for five dimensions of energy deprivation: two objective indicators of “low income, high costs” and “high share of energy expenditure in income”, as well as three subjective indicators of “inability to keep the home adequately warm”, “presence of leaks, damp, or rot” and “difficulties paying utility bills”. We define households as poor if at least two forms of deprivation are present. We apply our index to Poland using Household Budget Survey data. We find that in 2017, 10% of households in Poland suffered from multidimensional energy poverty, and that about half of these households were also income-poor. Households living in buildings built before 1946, households living in rural areas, and households that were dependent on retirement and disability pensions or on unearned sources of income were at especially high risk of energy poverty.

Suggested Citation

  • Stefan Bouzarovski & Aneta Kie³czewska & Piotr Lewandowski & Jakub Soko³owski, 2019. "Measuring energy poverty in Poland with the Multidimensional Energy Poverty Index," IBS Working Papers 07/2019, Instytut Badan Strukturalnych.
  • Handle: RePEc:ibt:wpaper:wp072019
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    References listed on IDEAS

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    2. Thomson, Harriet & Snell, Carolyn, 2013. "Quantifying the prevalence of fuel poverty across the European Union," Energy Policy, Elsevier, vol. 52(C), pages 563-572.
    3. Jakub Sokolowski & Aneta Kielczewska & Piotr Lewandowski, 2019. "Defining and measuring energy poverty in Poland," IBS Research Reports 01/2019, Instytut Badan Strukturalnych.
    4. Michal Myck & Mateusz Najsztub, 2015. "Data and Model Cross-validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey," International Journal of Microsimulation, International Microsimulation Association, vol. 8(1), pages 33-66.
    5. Maciej Lis & Agata Miazga & Katarzyna Salach, 2016. "Location, location, location. What accounts for regional variation of fuel poverty in Poland?," IBS Working Papers 09/2016, Instytut Badan Strukturalnych.
    6. Sadath, Anver C. & Acharya, Rajesh H., 2017. "Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India," Energy Policy, Elsevier, vol. 102(C), pages 540-550.
    7. Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 1-13.
    8. Jan Rutkowski & Katarzyna Salach & Aleksander Szpor & Konstancja Ziolkowska, 2018. "How to reduce energy poverty in Poland?," IBS Policy Papers 01/2018, Instytut Badan Strukturalnych.
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    Cited by:

    1. Karpinska, Lilia & Śmiech, Sławomir, 2020. "Conceptualising housing costs: The hidden face of energy poverty in Poland," Energy Policy, Elsevier, vol. 147(C).

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    More about this item

    Keywords

    energy poverty; multidimensional poverty index; Alkire-Foster method;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

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