Where Does Energy Poverty End and Where Does It Begin? A Review of Dimensions, Determinants and Impacts on Households

Abstract

The paper explores the concept of energy poverty (EP) by examining its definition, dimensions, determinants, and impacts on households. The study underscores the necessity of comprehending the multifaceted subjective and objective nature of energy poverty, as evidenced by the proposal of a comprehensive tool for measuring energy poverty from a broad perspective. The concept of energy poverty comprises seven principal dimensions, namely, political, economic, health, infrastructure, social, energy transfer, and climate and environmental. Each of these dimensions operates as both a cause and a consequence of energy poverty, thereby creating a cyclical relationship between the various determinants. A significant aspect of the study is the utilization of objective and subjective indicators. These include measures of the relationship between expenditure and income, the technical condition of buildings, thermal comfort, debt, and initiatives taken to prevent this phenomenon at the household level. The concept posits a novel attribute of EP, namely, “transitional state”, which signifies that energy poverty can concurrently serve as a catalyst and a consequence of adverse socio-economic phenomena in certain instances affecting the overall quality of life. The recommendations encompass using a holistic method that considers not only the analysis of the energy poverty index but also detailed and subjective indicators. The proposed tool will enable a more effective formulation of public policy at the European Union level, providing a unified direction to research this phenomenon at multiple precision levels.