Measuring Fuel Poverty: General Considerations and Application to German Household Data

Abstract

Indicators of energy affordability and fuel poverty are a powerful tool to identify the most vulnerable households and to avoid imposing excessive burdens by climate policy. Fuel-poverty measurement consists of two independent parts: first, the definition of an appropriate fuel-poverty line, and secondly, techniques to measure fuel poverty. This paper reviews options for the definition of fuel-poverty lines and measurement techniques. Based on household data from Germany, figures that would result from different fuel-poverty lines are derived. The choice of the fuel-poverty line matters decisively for the resulting assessment. Existing fuel-poverty lines should undergo empirical reexamination and then be adapted to the case of Germany.