Does Energy Poverty Affect Energy Efficiency Investment Decisions? First Evidence from a Stated Choice Experiment

Forecasting the COVID-19 effects on energy poverty across EU member states

The COVID-19 pandemic is manifesting its devastating effects in multiple directions, even indirectly affecting the health of citizens, for instance, by increasing the level of energy poverty (EP). As part of the studies that are trying to frame the consequences of the pandemic, this paper aims to identify the effects on EP in the coming years in a bid to identify the countries of the European Union most affected and the time span necessary to return to a path to reduce EP. For this purpose, an analysis based on the supervised learning algorithms of dynamic factor models is carried out. The outcomes of this investigation show that the negative effects of the pandemic on the level of EP will be reabsorbed very slowly, not before 2025, and in any case with substantial differences between countries, further widening the gap between countries with low levels of EP and those with greater EP levels.

Assessing the impact of green fiscal policies and energy poverty on energy efficiency

This article estimates the ties between green fiscal policies and energy efficiency in COVID-19 era. For this purpose, data envelopment analysis (DEA) approach is considered and applied. The study findings show that green fiscal policies, such as public supports and tax rebates, have significant role in reducing energy poverty of different international countries by advancing energy efficiency. Therefore, a panel data ranging from 2010 to 2020 is used. Our findings indicate that the aggregate degree of green fiscal policies help to decline energy poverty. Renewable energy companies had larger series of net fiscal competence and size efficiency, and their levels of energy efficiency were greater than 0.457%, with the 16% effect of current public supports and 11% effect of taxation rebates supported to diminish energy poverty with 29.7% in different international economies. This is a positive effect by green fiscal policies. The study also presented policy implications suggesting effectively implementing green fiscal policies for more efficient carbon reduction and making climate change supportive for peoples in post COVID-19 period.

Are Energy-Vulnerable Households More Prone to Informative, Market, and Behavioral Biases?

The present paper focuses primarily on investigating whether energy-vulnerable households are more prone to informative, market, and behavioral biases. In this direction, a stated preference approach was used to elicit information about human behavior and cognitive barriers in the context of energy poverty based on both subjective and objective indicators. For the purposes of the survey, a questionnaire was developed that included around 40 questions about housing conditions and information, market, and behavioral barriers related to energy efficiency, energy vulnerability, etc., and specific survey hypotheses were tested employing non-parametric tests. The survey was carried out between November 2020 and January 2021 involving residents of Metsovo, a mountain settlement in Greece. In total, 303 participants took place in the survey through personal interviews, which were conducted remotely due to the COVID-19 pandemic-related distancing measures, using a video platform. The analysis shows that households that face thermal discomfort or are in arrears on energy bills seem to be more prone to certain behavioral and other biases. This conclusion is not confirmed for households that face condensation, mold and damp problems or are classified as energy-poor under the “ten percent rule”. The main conclusion drawn is that the income status of the household plays a greater role compared to its classification as energy vulnerable. Nevertheless, the findings of the study need to be confirmed by future research, because the research specifically on how energy poverty affects people’s decision making is extremely limited. In any case, the results are worrisome and illustrate the need for more effective energy poverty policies that will take into account the effects of scarcity on household decision making.