Title: Energy poverty and energy efficiency in emerging economies

Authors: Rui Li; Ying Xin; Iryna Sotnyk; Oleksandr Kubatko; Ismail Almashaqbeh; Svitlana Fedyna; Olha Prokopenko

Addresses: Research Center of Western Energy Economy and Regional Development, Economics Institute, Xi'an University of Finance and Economics, 360 Changning Street, Xi'an, 710100, Shaanxi, China ' Economics Institute, Xi'an University of Finance and Economics, 360 Changning Street, Xi'an, 710100, Shaanxi, China ' Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Rymskogo-Korsakova St., 40007 Sumy, Ukraine ' Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Rymskogo-Korsakova St., 40007 Sumy, Ukraine ' Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Rymskogo-Korsakova St., 40007 Sumy, Ukraine ' Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Rymskogo-Korsakova St., 40007 Sumy, Ukraine ' Department of Economics and International Economic Relations, International Humanitarian University, 33, Fontanskaya Road, Odesa, 65009, Ukraine

Abstract: Energy poverty and low energy efficiency of households in emerging economies is a challenging sustainability issue. Using the general least squares technique for time series it is found that if households' expenditures for utilities grow by one percentage point, the poverty headcount ratio below national poverty lines increases by three percentage points in Ukraine during the period 1999-2018. With GDP per capita rising by 100 USD, there is a decrease in the headcount ratio below national poverty lines by six percentage points. That is, even a slight increase in household incomes has a significant effect on reducing energy poverty. The results suggest that if GDP per capita increases by 1000 USD, the energy efficiency of GDP improves by one USD per kg of oil equivalent. Therefore, increased population well-being is a factor of energy poverty reduction and energy efficiency improvements. The rise of utilities prices contributes to the profitability growth of energy-efficient measures and the increase in utilities expenditures.

Keywords: energy poverty; energy efficiency; emerging economies; econometric model; Ukraine; household; sustainable development; utility prices; warm loans; energy cooperative.

DOI: 10.1504/IJEP.2021.125188

International Journal of Environment and Pollution, 2021 Vol.69 No.1/2, pp.1 - 21

Received: 04 May 2021
Accepted: 07 Dec 2021
Published online: 01 Sep 2022 *