Analyzing Regional Energy Poverty Using Energy Poverty Possibility Indicator

This chapter investigates energy poverty and its contributing factors in Japan’s Oita and Tokyo prefectures. The primary aim is to analyze household energy poverty regional variations from an affordability perspective, particularly in response to the unexpected surge in energy prices caused by the Russia–Ukraine conflict and other significant influences. The research employs the Ten-Percent Rule, the K-means clustering algorithm, and fuzzy numbers to develop the Energy Poverty Possibility Indicator. This indicator is used to compare the intensity of energy poverty across three categories for households in Oita and Tokyo, based on 1298 samples. The findings reveal that sudden increases in energy costs exacerbate the energy poverty gap to varying extents across regions. Sensitivity analysis suggests that, under the current energy challenges, the most effective strategy to alleviate the energy poverty burden involves capping electricity and gas price increases at 14% (9%) and 3% (21%) for Tokyo (Oita), respectively, and providing monthly government financial support of 5500 yen in Tokyo and 9500 yen in Oita.