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Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data

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  • Drescher, Katharina
  • Janzen, Benedikt

Abstract

We examine the determinants, persistence, and dynamics of energy poverty using seven waves of the German Socio-Economic Panel (GSOEP). Employing a dynamic random effects probit model we find evidence of genuine state dependence effects in energy poverty with households being up to 7.5% more likely to face energy poverty if they were energy poor in the previous period. Energy poverty is associated with household composition, educational attainment, labour force status, energy-inefficient housing, and the heating system in place. We document common predictors of perceived and objectively measured energy poverty. Our results suggest that energy poverty in Germany is mostly a transitory state, with 78% of the energy poor households in our sample only temporarily facing energy poverty.

Suggested Citation

  • Drescher, Katharina & Janzen, Benedikt, 2021. "Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data," Energy Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s014098832100325x
    DOI: 10.1016/j.eneco.2021.105433
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    More about this item

    Keywords

    Energy poverty; Fuel poverty; Energy affordability; Dynamic random effects probit;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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