Energy Poverty Among Households in EU Countries: A Panel Data Analysis

The household is a key subject of economic analysis, particularly in the context of inequalities in access to essential goods. One manifestation of these constraints is energy poverty, defined as a situation in which excessive expenditure on energy prevents households from achieving an optimal consumption pattern. Energy, as a basic good with low demand elasticity, is difficult to reduce, especially in the short term. Rising energy prices therefore lead to budgetary pressure and the sacrifice of other needs. The problem is exacerbated by the low energy efficiency of homes and a lack of funds for modernisation, creating an energy poverty trap. The aim of this article is to analyse the determinants of energy poverty in the European Union. Panel analysis was used for this purpose, as it allows for the observation of units over multiple time periods. The analysis revealed that the most significant factor influencing the level of energy poverty is the unemployment rate (particularly among the new Member States). The impact of GDP per capita (PPS) also proved to be significant. Furthermore, the share of tenant households is of particular importance among the new Member States. The share of renewable energy in the energy mix also proved significant, as it can both reduce energy poverty (in the new Member States) and increase it (in the old Member States).