IDEAS home Printed from https://ideas.repec.org/p/old/dpaper/395.html
   My bibliography  Save this paper

How Fuel Poverty Affects Subjective Well-Being: Panel Evidence from Germany

Author

Listed:
  • Philipp Biermann

    () (University of Oldenburg, Department of Economics)

Abstract

This paper uses panel data on life satisfaction of about 40,000 individuals in Germany from 1994 to 2013 to analyze the relationship of subjective well-being and several measures of fuel poverty. We study fuel poverty and its effects on life satisfaction in terms of incidence, intensity and in comparison to income poverty. We find a negative and significant effect of fuel poverty and subjective well-being. The effects are comparable in magnitude to those of other important factors of life satisfaction. The impact we find is beyond the effect of mere income poverty. We classify measures of fuel poverty into several types and find that there is a difference with respect to the well-being effects depending on the type of measure. Our findings confirm the argument of the recent literature that fuel poverty is an important issue and should be on the agenda of policy makers.

Suggested Citation

  • 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.
  • Handle: RePEc:old:dpaper:395
    as

    Download full text from publisher

    File URL: http://www.uni-oldenburg.de/fileadmin/user_upload/wire/fachgebiete/vwl/V-395-16.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 375-406.
    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. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    5. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
    6. Vaage, Kjell, 2000. "Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand," Energy Economics, Elsevier, vol. 22(6), pages 649-666, December.
    7. Peter Heindl, 2015. "Measuring Fuel Poverty: General Considerations and Application to German Household Data," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(2), pages 178-215, June.
    8. 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.
    9. Moore, Richard, 2012. "Definitions of fuel poverty: Implications for policy," Energy Policy, Elsevier, vol. 49(C), pages 19-26.
    10. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    11. Baker, Paul & Blundell, Richard, 1991. "The Microeconometric Approach to Modelling Energy Demand: Some Results for UK Households," Oxford Review of Economic Policy, Oxford University Press, vol. 7(2), pages 54-76, Summer.
    12. Andrew E. Clark & Conchita d'Ambrosio & Simone Ghislandi, 2013. "Poverty and Well-Being: Panel Evidence from Germany," Working Papers hal-00814659, HAL.
    13. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    14. Halvorsen, Bente & Larsen, Bodil M., 2001. "The flexibility of household electricity demand over time," Resource and Energy Economics, Elsevier, vol. 23(1), pages 1-18, January.
    15. John Hills, 2012. "Getting the measure of fuel poverty: Executive summary," CASE Briefs 31, Centre for Analysis of Social Exclusion, LSE.
    16. Udo Ebert, 2004. "Social welfare, inequality, and poverty when needs differ," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(3), pages 415-448, December.
    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. Awaworyi Churchill, Sefa & Smyth, Russell, 2020. "Ethnic diversity, energy poverty and the mediating role of trust: Evidence from household panel data for Australia11We thank two referees for constructive comments. This article uses unit record data ," Energy Economics, Elsevier, vol. 86(C).
    2. Rodríguez-Álvarez, A. & Orea, L. & Jamasb, T., 2016. "Fuel poverty and well-being: a consmer theory and stochastic fronteir approach," Cambridge Working Papers in Economics 1668, Faculty of Economics, University of Cambridge.
    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. Elena Druică & Zizi Goschin & Rodica Ianole-Călin, 2019. "Energy Poverty and Life Satisfaction: Structural Mechanisms and Their Implications," Energies, MDPI, Open Access Journal, vol. 12(20), pages 1-20, October.
    5. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).

    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. Peter Heindl, 2015. "Measuring Fuel Poverty: General Considerations and Application to German Household Data," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(2), pages 178-215, June.
    3. Heindl, Peter & Schuessler, Rudolf, 2015. "Dynamic properties of energy affordability measures," Energy Policy, Elsevier, vol. 86(C), pages 123-132.
    4. 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).
    5. 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.
    6. 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.
    7. Heinz Welsch & Philipp Biermann, 2017. "Energy Affordability and Subjective Well-Being: Evidence for European Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    8. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.
    9. Heinz Welsch & Philipp Biermann, 2014. "Energy Prices, Energy Poverty, and Well-Being: Evidence for European Countries," Working Papers V-369-14, University of Oldenburg, Department of Economics, revised Sep 2014.
    10. Ivan Faiella & Luciano Lavecchia, 2015. "Energy Poverty in Italy," Politica economica, Società editrice il Mulino, issue 1, pages 27-76.
    11. Heindl, Peter & Schüßler, Rudolf, 2019. "A deprivation-based assessment of energy poverty: Conceptual problems and application to Germany," ZEW Discussion Papers 19-036, ZEW - Leibniz Centre for European Economic Research.
    12. Okushima, Shinichiro, 2017. "Gauging energy poverty: A multidimensional approach," Energy, Elsevier, vol. 137(C), pages 1159-1166.
    13. 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.
    14. 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.
    15. Mattioli, Giulio & Lucas, Karen & Marsden, Greg, 2018. "Reprint of Transport poverty and fuel poverty in the UK: From analogy to comparison," Transport Policy, Elsevier, vol. 65(C), pages 114-125.
    16. Senik, Claudia, 2008. "Is man doomed to progress?," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 140-152, October.
    17. Llorca, Manuel & Rodriguez-Alvarez, Ana & Jamasb, Tooraj, 2020. "Objective vs. subjective fuel poverty and self-assessed health," Energy Economics, Elsevier, vol. 87(C).
    18. M. Hussain, 2016. "EU Country Rankings’ Sensitivity to the Choice of Welfare Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 1-17, January.
    19. 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.
    20. Lohmann, Paul & Pondorfer, Andreas & Rehdanz, Katrin, 2019. "Natural Hazards and Well-Being in a Small-Scale Island Society," Ecological Economics, Elsevier, vol. 159(C), pages 344-353.

    More about this item

    Keywords

    fuel poverty; consumer welfare; subjective well-being; Germany;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    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:old:dpaper:395. 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: (Catharina Schramm). General contact details of provider: http://edirc.repec.org/data/fwoldde.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.