The Convergence of Energy Poverty across Countries in the European Union

Abstract

With growing attention being paid to the problems of sustainable development and just transition, energy poverty emerges as a focal issue to be addressed by the Common Policy. However, the dynamics of this phenomenon across the EU still appear to be insufficiently recognised. Therefore, this study deals with the problem of energy poverty convergence and aims to test it for the 27 EU countries over the period 2010–2022. Contrary to limited studies of energy poverty convergence that use a simple indicator, it uses aggregate measures based on consensual consequential indicators of energy poverty to verify the hypothesis of convergence. Absolute and conditional beta convergence are considered. Potential determinants of energy poverty are incorporated into a model of conditional convergence. The analysis confirms the existence of beta convergence of energy poverty in the EU, indicating the progressing socio-economic cohesion of the member states. The results, thus, deliver some arguments supporting an integrative approach to the energy policy of the EU. The research reveals that, among the factors influencing EP dynamics, an important role may be attributed to technological catch-up and income distribution across a society. Sustainable development should thus be supported with energy modernisation efforts of an inclusive character.

Keywords

• energy poverty
• beta convergence
• absolute convergence
• conditional convergence
• sustainable development
• energy policy