Improving Indicators for Comparing Energy Poverty in the Canary Islands and Spain

Abstract

In this work, energy poverty in the Canary Islands is analysed, and a new indicator to measure it is proposed. In the first place, a quantitative analysis has been conducted using different income-based indicators and contrasting the results with the Spanish situation during the 2006−2016 period. The archipelago presents some specific characteristics (high poverty rates combined with low energy consumption) that make necessary the introduction of an alternative, more robust indicator than those existing in the literature. Based on a combination of different income-based indicators, a new one is proposed, named “Compound Energy Poverty Indicator” (CEPI). The CEPI reveals the special features of the Canaries consistent with their regional singularities, as recommended by the European Union energy policies. The evolution of this indicator shows the greater impact of the 2008 economic crisis on the Canary Islands compared to Spain, almost reaching the Spanish energy poverty rates at the end of the period (12.5 versus 11.49). Moreover, the average growth rate from 2006 to 2016 (13.0%) results very high in comparison with the national 2.6%. The development of a systematic and coordinated strategy in the Canaries to assess the energy poverty incidence would not be possible without a proper, accurate indicator.

Keywords

• energy poverty
• indicators
• household income
• energy expenditure
• poverty rate