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The impact of rising energy prices on energy poverty in Queensland: A microsimulation exercise

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  • Chai, Andreas
  • Ratnasiri, Shyama
  • Wagner, Liam

Abstract

This study empirically estimates energy poverty levels across Queensland regions. It includes estimates of the number of households experiencing energy poverty in a region and the ability of households across regions to adapt to rising prices (price elasticity). We use these results to conduct a microsimulation exercise to examine how further rises in electricity prices could trigger a rise in energy poverty. It is estimated that 3.42% of all Queensland households – approximately 63,128 households – experience energy poverty, most of them being in the lowest income quintile. Energy poverty appears to be concentrated in certain regions, including Gladstone, Logan and Far North Queensland. A range of contributing factors may account for this pattern: high levels of income insecurity, weather and demographic differences. Beyond the distribution, our results also provide evidence that energy poverty is concentrated in certain groups, including large households. Policy implications are discussed.

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  • Chai, Andreas & Ratnasiri, Shyama & Wagner, Liam, 2021. "The impact of rising energy prices on energy poverty in Queensland: A microsimulation exercise," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 57-72.
    • Handle: RePEc:eee:ecanpo:v:71:y:2021:i:c:p:57-72
    DOI: 10.1016/j.eap.2021.03.014
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    Cited by:

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    3. Cathal ODonoghue & Beenish Amjad & Jules Linden & Nora Lustig & Denisa Sologon & Yang Wang, 2023. "The Distributional Impact of Inflation in Pakistan: A Case Study of a New Price Focused Microsimulation Framework, PRICES," Papers 2310.00231, arXiv.org, revised Mar 2024.
    4. Rafał Nagaj, 2022. "Macroeconomic Policy versus Fuel Poverty in Poland—Support or Barrier," Energies, MDPI, vol. 15(13), pages 1-22, June.
    5. Simshauser, Paul & Miller, Wendy, 2023. "On the impact of targeted and universal electricity concessions policy on fuel poverty in the NEM's Queensland region," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1848-1857.
    6. Cheng, Zhiming & Guo, Liwen & Smyth, Russell & Tani, Massimiliano, 2022. "Childhood adversity and energy poverty," Energy Economics, Elsevier, vol. 111(C).
    7. Muhammad, Sulaman & Pan, Yanchun & Ke, Xiao & Agha, Mujtaba Hassan & Borah, Prasad Siba & Akhtar, Muhammad, 2023. "European transition toward climate neutrality: Is renewable energy fueling energy poverty across Europe?," Renewable Energy, Elsevier, vol. 208(C), pages 181-190.
    8. Priya, Pragati & Sharma, Chandan, 2024. "On transmission channels of energy prices and monetary policy shocks to household consumption: Evidence from India," Energy Economics, Elsevier, vol. 136(C).
    9. Simshauser, Paul, 2023. "The 2022 energy crisis: Fuel poverty and the impact of policy interventions in Australia's National Electricity Market," Energy Economics, Elsevier, vol. 121(C).
    10. Denisova, Irina & Varioshkin, Nikita, 2022. "The impact of foreign trade shocks on well-being of Russian households: Microsimulation approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 68, pages 73-92.
    11. Rasanga, Fiona & Harrison, Tina & Calabrese, Raffaella, 2024. "Measuring the energy poverty premium in Great Britain and identifying its main drivers based on longitudinal household survey data," Energy Economics, Elsevier, vol. 136(C).

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    Keywords

    Energy poverty; Electricity prices;

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