Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data

By Katharina Drescher, Benedikt Janzen. 2021

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Abstract We examine the determinants, persistence, and dynamics of energy poverty using seven waves of the German Socio-Economic Panel (GSOEP). Employing a dynamic random effects probit model we find evidence of genuine state dependence effects in energy poverty with households being up to 7.5% more likely to face energy poverty if they were energy poor in the previous period. Energy poverty is associated with household composition, educational attainment, labour force status, energy-inefficient housing, and the heating system in place. We document common predictors of perceived and objectively measured energy poverty. Our results suggest that energy poverty in Germany is mostly a transitory state, with 78% of the energy poor households in our sample only temporarily facing energy poverty.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/68036f0bc52f30b392741110b7cf8fac7c259fb8