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Fuel Poverty: A Composite Index Approach

Author

Listed:
  • Dorothée Charlier

    (University of Montpellier)

  • Bérangère Legendre

    (IAE Savoie Mont-Blanc, IREGE)

Abstract

Although fuel poverty is an increasingly serious problem across countries, it has not been well defined or measured in the literature. Currently, an objective measure that takes into account monetary constraints, poor energy efficiency of the dwelling and heating restrictions does not exist. Fuel poverty has been mainly treated as a problem of monetary poverty. However, fuel-impoverished households may differ from those with monetary poverty. Thus, this paper provides a fuel poverty index that takes into account all dimensions of the definition. This index is calculated using objective measures such as disposable income to account for monetary constraints, energy consumption as a measure of energy efficiency and indoor temperature to capture heating restrictions.

Suggested Citation

  • Dorothée Charlier & Bérangère Legendre, 2016. "Fuel Poverty: A Composite Index Approach," Policy Papers 2016.06, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:ppaper:2016.06
    as

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    File URL: http://faere.fr/pub/PolicyPapers/Charlier_Legendre_FAERE_PP2016.06.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Florian Fizaine & Sondès Kahouli, 2018. "On the power of indicators: how the choice of the fuel poverty measure affects the identification of the target population," Policy Papers 2018.01, FAERE - French Association of Environmental and Resource Economists.
    4. Kelly, J. Andrew & Clinch, J. Peter & Kelleher, L. & Shahab, S., 2020. "Enabling a just transition: A composite indicator for assessing home-heating energy-poverty risk and the impact of environmental policy measures," Energy Policy, Elsevier, vol. 146(C).
    5. Huang, Luling & Nock, Destenie, 2024. "Estimating the income-related inequality aversion to energy limiting behavior in the United States," Energy Economics, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Fuel Poverty; Matching Method; Composite indicator; Heating restriction; Energy efficiency;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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