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Energy poverty risk: a spatial index based on energy efficiency

Author

Listed:
  • Luciano Lavecchia

    (Bank of Italy)

  • Raffaele Miniaci

    (University of Brescia)

  • Paola Valbonesi

    (University of Padua)

  • Gowthami Venkateswaran

    (University of Illinois at Urbana-Champaign)

Abstract

We propose an Energy Poverty Risk Index (EPRI) and assess it at the local (municipal) level on Italian regional data. The EPRI includes four components: modelled expenditure required to satisfy household energy needs, severity of climate conditions, quality of the building stock and local 'wealth' (proxied by education and taxable income). The EPRI accounts for local differences in the many factors affecting energy poverty. Specifically, it is based on the idea that the higher the expenditure required to meet the energy needs and/or the severity of climate conditions, the higher the risk of energy poverty; on the contrary, wealthier areas and/or those with higher-quality buildings face a lower energy poverty risk. Our empirical analysis of the Lombardy region confirms these points and highlights a lower energy poverty risk in urban areas and higher energy poverty in rural and mountain municipalities. These results, with a municipal-level granularity, could be a first step towards a national energy poverty dashboard that can help design local actions to reduce the impacts of energy and climate factors on the most vulnerable.

Suggested Citation

  • Luciano Lavecchia & Raffaele Miniaci & Paola Valbonesi & Gowthami Venkateswaran, 2024. "Energy poverty risk: a spatial index based on energy efficiency," Questioni di Economia e Finanza (Occasional Papers) 864, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_864_24
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    References listed on IDEAS

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    More about this item

    Keywords

    energy poverty; fuel poverty; energy efficiency; residential sector; Energy Performance Certificate (EPC); Italy; Composite Index;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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