Escaping Energy Poverty: a Comparative Analysis of 17 European Countries

Abstract

A comparative analysis of energy poverty transitions and persistence can provide valuable suggestions for long-term policy actions. This study examines the dynamics of energy poverty in 17 European countries based on the longitudinal household data from the EU Survey on Income and Living Conditions, waves 2015-2018. The study pursues two goals. First, we explore households’ chances of transitioning in and out of energy poverty in each country following the discrete-time Markov process. On average, the probability to stay in energy poverty is 51.5%, and there is a lot of heterogeneity across countries. Households in Bulgaria, Greece, Romania, and Lithuania are quite close to the energy poverty trap. Second, we identify factors that help energy-poor households leave energy poverty. Demographic, technical, and socio-economic factors are the drivers in escaping energy poverty, which suggests common EU policy.