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Are energy poverty metrics fit for purpose? An assessment using behavioural microsimulation. ESRI Working Paper 665 May 2020.

Reaños, Miguel Tovar and Lynch, Muireann Á (2020) Are energy poverty metrics fit for purpose? An assessment using behavioural microsimulation. ESRI Working Paper 665 May 2020. [Working Paper]

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    Abstract

    We assess the existing battery of metrics for measuring energy affordability. We analyse expenditure-based metrics and recently-developed metrics for multidimensional poverty under simulated scenarios which allow for the introduction of carbon taxation, increased housing costs, revenue re-allocation and increases in energy efficiency. We deploy the Exact Affine Stone Index (EASI) implicit Marshallian demand system to parameterise a microsimulation model. Expenditure-based metrics used by official bodies in Europe perform very poorly in capturing the impacts of both carbon taxation and policy responses. Multidimensional poverty metrics provide more intuitive results. Evidence from these metrics show that revenue recycling can mitigate the impacts of increased energy and housing costs in the extensive and intensive margins of energy poverty, while energy efficiency can exacerbate the intensity of those already classified as “energy poor”.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > energy policy (Including international arena)
    EU policies and themes > Policies & related activities > environmental policy (including international arena)
    Countries > Ireland
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Economic and Social Research Institute (ESRI), Dublin > ESRI Working Papers
    Depositing User: Daniel Pennell
    Official EU Document: No
    Language: English
    Date Deposited: 23 Sep 2021 10:27
    Number of Pages: 33
    Last Modified: 23 Sep 2021 10:27
    URI: http://aei.pitt.edu/id/eprint/103597

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