Measuring fuel poverty in tropical territories: A latent class model

Fuel poverty in tropical territories cannot be defined and measured using traditional indicators based on heating issues (expenditure, restriction or the sensation of cold inside houses). We propose a new framework for the identification of fuel-poor households by referring to Amartya Sen's Capability Approach. To accurately assess fuel poverty in tropical areas using observable objective characteristics of decent, safe and healthy dwellings, we use the latent class model (LCM) methodology. This approach allows us to categorize households as fuel poor or non-fuel poor. It is also possible to extend further by considering the multi-dimensional phenomenon of fuel poverty. Using three classes, we can underline a scale of fuel poverty severity with a new class of vulnerable households. Restricting fuel poverty in tropical areas to a binary phenomenon leads to the neglect of the complexity of energy deprivation.