IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_864_24.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2024-0864/QEF_864_24.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Camboni, Riccardo & Corsini, Alberto & Miniaci, Raffaele & Valbonesi, Paola, 2021. "Mapping fuel poverty risk at the municipal level. A small-scale analysis of Italian Energy Performance Certificate, census and survey data," Energy Policy, Elsevier, vol. 155(C).
    2. Chaton, Corinne & Lacroix, Elie, 2018. "Does France have a fuel poverty trap?," Energy Policy, Elsevier, vol. 113(C), pages 258-268.
    3. Roberts, Deborah & Vera-Toscano, Esperanza & Phimister, Euan, 2015. "Fuel poverty in the UK: Is there a difference between rural and urban areas?," Energy Policy, Elsevier, vol. 87(C), pages 216-223.
    4. Liddell, Christine & Morris, Chris & McKenzie, S.J.P. & Rae, Gordon, 2012. "Measuring and monitoring fuel poverty in the UK: National and regional perspectives," Energy Policy, Elsevier, vol. 49(C), pages 27-32.
    5. Sadath, Anver C. & Acharya, Rajesh H., 2017. "Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India," Energy Policy, Elsevier, vol. 102(C), pages 540-550.
    6. Carlo Andrea Bollino & Fabrizio Botti, 2017. "Energy Poverty in Europe: A Multidimensional Approach," PSL Quarterly Review, Economia civile, vol. 70(283), pages 449-472.
    7. Bouzarovski, Stefan & Simcock, Neil, 2017. "Spatializing energy justice," Energy Policy, Elsevier, vol. 107(C), pages 640-648.
    8. Riccardo Camboni & Alberto Corsini & Raffaele Miniaci & Paola Valbonesi, 2021. "Mapping fuel poverty risk at the municipal level. A small-scale analysis of Italian Energy Performance Certificate, census and survey data," Post-Print hal-03349930, HAL.
    9. Betto, Frida & Garengo, Patrizia & Lorenzoni, Arturo, 2020. "A new measure of Italian hidden energy poverty," Energy Policy, Elsevier, vol. 138(C).
    10. Aristondo, Oihana & Onaindia, Eneritz, 2018. "Inequality of energy poverty between groups in Spain," Energy, Elsevier, vol. 153(C), pages 431-442.
    11. Miniaci, Raffaele & Scarpa, Carlo & Valbonesi, Paola, 2014. "Energy affordability and the benefits system in Italy," Energy Policy, Elsevier, vol. 75(C), pages 289-300.
    12. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Awan, Ashar & Bilgili, Faik & Rahut, Dil Bahadur, 2022. "Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998–2019," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    2. Bezerra, Paula & Cruz, Talita & Mazzone, Antonella & Lucena, André F.P. & De Cian, Enrica & Schaeffer, Roberto, 2022. "The multidimensionality of energy poverty in Brazil: A historical analysis," Energy Policy, Elsevier, vol. 171(C).
    3. Kahouli, Sondès & Okushima, Shinichiro, 2021. "Regional energy poverty reevaluated: A direct measurement approach applied to France and Japan," Energy Economics, Elsevier, vol. 102(C).
    4. Deller, David & Turner, Glen & Waddams Price, Catherine, 2021. "Energy poverty indicators: Inconsistencies, implications and where next?," Energy Economics, Elsevier, vol. 103(C).
    5. Huang, Yatao & Jiao, Wenxian & Wang, Kang & Li, Erling & Yan, Yutong & Chen, Jingyang & Guo, Xuanxuan, 2022. "Examining the multidimensional energy poverty trap and its determinants: An empirical analysis at household and community levels in six provinces of China," Energy Policy, Elsevier, vol. 169(C).
    6. Liu, Zhong & Zhou, Zuanjiu & Liu, Chang, 2023. "Estimating the impact of rural centralized residence policy interventions on energy poverty in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    7. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    8. Abre-Rehmat Qurat-ul-Ann & Faisal Mehmood Mirza, 2021. "Multidimensional Energy Poverty in Pakistan: Empirical Evidence from Household Level Micro Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 211-258, May.
    9. George E. Halkos & Panagiotis-Stavros C. Aslanidis, 2023. "Addressing Multidimensional Energy Poverty Implications on Achieving Sustainable Development," Energies, MDPI, vol. 16(9), pages 1-30, April.
    10. Barbara Kryk & Malgorzata K. Guzowska, 2023. "Assessing the Level of Energy Poverty Using a Synthetic Multidimensional Energy Poverty Index in EU Countries," Energies, MDPI, vol. 16(3), pages 1-31, January.
    11. Blanka Tundys & Agnieszka Bretyn & Maciej Urbaniak, 2021. "Energy Poverty and Sustainable Economic Development: An Exploration of Correlations and Interdependencies in European Countries," Energies, MDPI, vol. 14(22), pages 1-25, November.
    12. Cadaval, María & Regueiro-Ferreira, Rosa Ma & Calvo, Santiago, 2022. "The role of the public sector in the mitigation of fuel poverty in Spain (2008–2019): Modeling the contribution of the BonoSocial deElectricidad," Energy, Elsevier, vol. 258(C).
    13. Yiming Xiao & Han Wu & Guohua Wang & Hong Mei, 2021. "Mapping the Worldwide Trends on Energy Poverty Research: A Bibliometric Analysis (1999–2019)," IJERPH, MDPI, vol. 18(4), pages 1-22, February.
    14. Esperanza Vera‐Toscano & Heather Brown, 2022. "Empirical Evidence on the Incidence and Persistence of Energy Poverty in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(4), pages 515-529, December.
    15. Grazini, Chiara, 2024. "Energy poverty as capacity deprivation: A study of social housing using the partially ordered set," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    16. 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).
    17. Lan, Jing & Khan, Sufyan Ullah & Sadiq, Muhammad & Chien, Fengsheng & Baloch, Zulfiqar Ali, 2022. "Evaluating energy poverty and its effects using multi-dimensional based DEA-like mathematical composite indicator approach: Findings from Asia," Energy Policy, Elsevier, vol. 165(C).
    18. Lilia Karpinska & Sławomir Śmiech, 2021. "Escaping Energy Poverty: A Comparative Analysis of 17 European Countries," Energies, MDPI, vol. 14(18), pages 1-16, September.
    19. Dogan, Eyup & Madaleno, Mara & Taskin, Dilvin, 2021. "Which households are more energy vulnerable? Energy poverty and financial inclusion in Turkey," Energy Economics, Elsevier, vol. 99(C).
    20. Chiara Grazini, 2023. "La poverta' energetica come privazione delle capacita' (Energy poverty as capabilities deprivation)," Moneta e Credito, Economia civile, vol. 76(301), pages 3-25.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_864_24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.