ENERGY POVERTY: ECONOMIC DEFINITION AND MEASUREMENT FEATURES

Keywords: public finance, economic recovery, energy poverty, sustainable development, energy transition

Abstract

The shortage of energy capacities, high volatility in energy prices and a sharp decline in household incomes amid wartime conditions are intensifying the already pressing issue of rapidly growing energy poverty in Ukraine. This article aims to clarify the concept of energy poverty, conduct a comparative analysis of the state of energy poverty in EU countries and Ukraine, and improve the organization of energy poverty monitoring in Ukraine. Using data from Eurostat, the International Energy Agency and the State Statistics Service of Ukraine, and applying economic and statistical methods, the study demonstrates the increasing negative impact of the 2021-2022 energy crisis on household energy poverty in both the EU and Ukraine. The research highlights that Ukraine faces greater risks due to disrupted infrastructure, uneven access to energy services, and rising migration. The article emphasizes current problems in developing a reliable and representative database for analyzing energy poverty in Ukraine. The absence of clear criteria and consistent assessment methodologies hinders the implementation of state support for energy-vulnerable households. It is advisable to apply clearer, scientifically grounded criteria and comprehensive approaches to defining target population groups during the process of energy monitoring, taking into account regional specifics, income levels, housing conditions, and access to energy resources. Special attention must be given to improving data collection mechanisms to ensure an impartial understanding of the real situation of households affected by energy poverty. Internal and external migration further complicate the consistency and reliability of household surveys. The worsening energy crisis in Ukraine requires an urgent reassessment of national policies for protecting vulnerable social groups. This includes the development of national energy poverty indicators, aligned with the goals of the energy sector and the strategic priorities for Ukraine’s post-war economic recovery. Furthermore, there is a need to specify measurable thresholds for basic energy needs to facilitate accurate evaluation and effective policymaking. The article proposes legal and institutional improvements in line with EU practices to enhance the monitoring and management of energy poverty in Ukraine.

References

European Commission. Communication from the Commission to the European Parliament. the Council. the European and Social Committee and the Committee of the Regions. Establishing a European Pillar of Social Rights. 2017. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017SC0201

World Bank. Progress on basic energy access reverses for first time in a decade. 2024. URL: https://www.worldbank.org/en/news/press-release/2024/06/11/progress-on-basic-energy-access-reverses-for-first-time-in-a-decade

Min B., et al. Lost in the dark: A survey of energy poverty from space. 2024. URL: https://blogs.worldbank.org/en/opendata/1-18-billion-around-the-world-are-unable-to-use-electricity

Energy poverty in the EU. URL: https://www.europarl.europa.eu/RegData/etudes/BRIE/2022/733583/EPRS_BRI(2022)733583_EN.pdf

Foster V., Tre J.P., Wodon Q. Energy Prices, Energy Efficiency and Fuel Poverty. World Bank. 2000. URL: http://www.mediaterre.org/docactu.bWF4aW0vZG9jcy9wZTE=.1.pdf

Drescher K., Janzen B. Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data. Energy Economics. 2021. № 102. 105433. DOI: https://doi.org/10.1016/j.eneco.2021.105433

Енергетична бідність в Україні. DiXi Group. 2019. URL: https://dixigroup.org/storage/files/2019-10-08/energetichna_bidnist_weg_upd_rn1.pdf

Nussbaumer P., Bazilian M., Modi V. Measuring energy poverty: focusing on what matters. Renewable and Sustainable Energy Reviews. 2012. № 16(1). Р. 231–243. DOI: https://doi.org/10.1016/j.rser.2011.07.150

Oswald Y., Owen A., Steinberger J.K. Large inequality in international and intranational energy footprints between income groups and across consumption categories. Nature Sustainability. 2020. № 5. Р. 231–239. DOI: https://doi.org/10.1038/s41560-020-0579-8

Chancel, L. Global carbon inequality over 1990–2019. Nature Sustainability. 2022. № 5. Р. 931–938. DOI: https://doi.org/10.1038/s41893-022-00955-z

Zabel L., Hendlin Y. To heat or to eat: Scrutinizing the institutional response to energy poverty in Rotterdam. Energy Research & Social Science. 2025. № 123. 104024. DOI: https://doi.org/10.1016/j.erss.2025.104024

Naumenkova S., Mishchenko V., Mishchenko S. Key energy indicators for sustainable development goals in Ukraine. Problems and Perspectives in Management. 2022. №20(1). Р.379–395. DOI: http://dx.doi.org/10.21511/ppm.20(1).2022.31

Croon Т.М., et al. Beyond headcount statistics: Exploring the utility of energy poverty gap indices in policy design. Energy Policy. 2023. № 177. 113579. DOI: https://doi.org/10.1016/j.enpol.2023.113579

Rodriguez-Alvarez А., Llorca М., Jamasb Т. Alleviating energy poverty in Europe: Front-runners and laggards. Energy Economics. 2021. № 103. 105575. DOI: https://doi.org/10.1016/j.eneco.2021.105575

Sareen S., et al. European energy poverty metrics: scales, prospects and limits. Global Transitions. 2020. № 2. Р. 26–36. DOI: https://doi.org/10.1016/j.glt.2020.01.003

Kashour M., Jaber M. Revisiting energy poverty measurement for the European Union. Energy Research & Social Science. 2024. № 109. 103420. DOI: https://doi.org/10.1016/j.erss.2024.103420

European Commission. Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty. 2020. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32020H1563&qid=1606124119302

European Commission. Energy poverty. 2024. URL: https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-poverty_en

Новак І. М. Деприваційні індикатори енергетичної бідності. Демографія та соціальна економіка. 2020. № 3(41). С. 158-172. DOI: https://doi.org/10.15407/dse2020.03.158

Naumenkova S., Tishchenko I., Mishchenko V., Mishchenko S. Rethinking energy poverty alleviation through energy efficiency: Evidence from Ukraine. Environmental Economics. 2024. № 15(2). Р. 198-214. DOI: http://dx.doi.org/10.21511/ee.15(2).2024.14

Naumenkova S., Mishchenko І., Tishchenko І., Mishchenko V. Government support for addressing energy poverty in the context of low-carbon transition. Public and Municipal Finance. 2025. № 14(2). Р. 64-82. DOI: http://dx.doi.org/10.21511/pmf.14(2).2025.07

Мішенко В., Міщенко С. Маркетинг цифрових інновацій на ринку банківських послуг. Фінансовий простір. 2018. № 1(29). С. 75-79.

Міщенко В. Механізми регулювання процесів цифровізації для забезпечення національно укоріненої стійкості економічного розвитку. Економічний простір. 2024. № 189. С. 283-290. DOI: https://doi.org/10.32782/2224-6282/189-50

Міщенко В.І. Управління кібербезпекою в системі забезпечення національно укоріненої стійкості економічного розвитку. Економічна теорія. 2023. №1. С. 47-72. DOI: https://doi.org/10.15407/etet2023.01.047

Isherwood R., Hancock B. Household Expenditure on Fuel: Distributional Aspects; Economic Adviser’s Office. DHSS: London. 1979.

Boardman. B. Fuel poverty: from cold homes to affordable warmth. 1991. Belhaven Press. 267 p.

Council of the European Union. Proposal for a Directive of the European Parliament and of the Council on Energy Efficiency (recast). 2023. URL: https://data.consilium.europa.eu/doc/document/ST-7446-2023-INIT/en/pdf

IEA. Data and Statistics. URL: https://www.iea.org/data-and-statistics

Eurostat. Database. URL: https://ec.europa.eu/eurostat/en/

UNDP. Ukraine – Fourth Rapid Damage and Needs Assessment (RDNA4). 2025. URL: https://www.undp.org/ukraine/publications/ukraine-fourth-rapid-damage-and-needs-assessment-rdna4-february-2022-december-2024-english

Державна служба статистики України. Статистична інформація. URL: https://www.ukrstat.gov.ua/

World Bank. Resilience. reliance. readjustment: How Ukrainians are coping with the war. 2024. URL: https://www.worldbank.org/en/news/opinion/2024/06/11/resilience-reliance-readjustment-how-ukrainians-are-coping-with-the-war

European Commission. (2017). Communication from the Commission to the European Parliament. the Council. the European and Social Committee and the Committee of the Regions. Establishing a European Pillar of Social Rights. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017SC0201

World Bank. (2024). Progress on basic energy access reverses for first time in a decade. Available at: https://www.worldbank.org/en/news/press-release/2024/06/11/progress-on-basic-energy-access-reverses-for-first-time-in-a-decade

Min, B., et al. (2024). Lost in the dark: A survey of energy poverty from space. Available at: https://blogs.worldbank.org/en/opendata/1-18-billion-around-the-world-are-unable-to-use-electricity.

EU. (2023). Energy poverty in the EU. Available at: https://www.europarl.europa.eu/RegData/etudes/BRIE/2022/733583/EPRS_BRI(2022)733583_EN.pdf

Foster, V., Tre, J.P., & Wodon, Q. (2000). Energy Prices, Energy Efficiency and Fuel Poverty. World Bank. Available at: http://www.mediaterre.org/docactu.bWF4aW0vZG9jcy9wZTE=.1.pdf

Drescher, K., Janzen, B. (2021). Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data. Energy Economics, 102, 105433. DOI: https://doi.org/10.1016/j.eneco.2021

DiXi Group. (2019). Energy poverty in Ukraine [Energetichna bidnist v Ukrayini]. Available at: https://dixigroup.org/storage/files/2019-10-08/energetichna_bidnist_weg_upd_rn1.pdf [in Ukrainian]

Nussbaumer, P., Bazilian, M., & Modi, V. (2012). Measuring energy poverty: focusing on what matters. Renewable and Sustainable Energy Reviews, 16(1), pp. 231–243. DOI: https://doi.org/10.1016/j.rser.2011.07.150

Oswald, Y., Owen, A., & Steinberger, J.K. (2020). Large inequality in international and intranational energy footprints between income groups and across consumption categories. Nature Sustainability, 5, pp.231–239. DOI: https://doi.org/10.1038/s41560-020-0579-8

Chancel, L. (2022). Global carbon inequality over 1990–2019. Nature Sustainability, 5, pp. 931–938. DOI: https://doi.org/10.1038/s41893-022-00955-z

Zabel, L., & Hendlin, Y. (2025). To heat or to eat: Scrutinizing the institutional response to energy poverty in Rotterdam. Energy Research & Social Science, 123, 104024. DOI: https://doi.org/10.1016/j.erss.2025.104024

Naumenkova, S., Mishchenko, V., & Mishchenko, S. (2022). Key energy indicators for sustainable development goals in Ukraine. Problems and Perspectives in Management, 20(1), pp. 379–395. DOI: http://dx.doi.org/10.21511/ppm.20(1).2022.31

Croon, Т.М., et al. (2023). Beyond headcount statistics: Exploring the utility of energy poverty gap indices in policy design. Energy Policy, 177, 113579. DOI: https://doi.org/10.1016/j.enpol.2023.113579

Rodriguez-Alvarez, А., Llorca, М., Jamasb, Т. (2021). Alleviating energy poverty in Europe: Front-runners and laggards. Energy Economics, 103, 105575. DOI: https://doi.org/10.1016/j.eneco.2021.105575

Sareen, S., et al. (2020). European energy poverty metrics: scales, prospects and limits. Global Transitions, 2, pp. 26–36. DOI: https://doi.org/10.1016/j.glt.2020.01.003

Kashour, M., & Jaber, M. (2024). Revisiting energy poverty measurement for the European Union. Energy Research & Social Science, 109, 103420. DOI: https://doi.org/10.1016/j.erss.2024.103420

European Commission. (2020). Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32020H1563&qid=1606124119302

European Commission. (2024). Energy poverty. Available at: https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-poverty_en

Novak, I. (2020). Deprivation Energy Poverty Indicators. Demography and Social Economy, 3(41), рр. 158-172. DOI: https://doi.org/10.15407/dse2020.03.158

Naumenkova, S., Tishchenko, I., Mishchenko, V., & Mishchenko, S. (2024). Rethinking energy poverty alleviation through energy efficiency: Evidence from Ukraine. Environmental Economics, 15(2), pp. 198-214. DOI: http://dx.doi.org/10.21511/ee.15(2).2024.14

Naumenkova, S., Mishchenko, І., Tishchenko, І., & Mishchenko, V. (2025). Government support for addressing energy poverty in the context of low-carbon transition. Public and Municipal Finance, 14(2), pp. 64-82. DOI: http://dx.doi.org/10.21511/pmf.14(2).2025.07

Mishchenko, V. & Mishchenko, S. (2018). Marketynh tsyfrovykh innovatsii na rynku bankivskykh posluh [Marketing of digital innovations in the banking services market]. Financial Space, 1(29), pp. 75-79. [in Ukrainian]

Mishchenko, V. (2024). Mekhanizmy rehuliuvannia protsesiv tsyfrovizatsii dlia zabezpechennia natsionalno ukorinenoi stiikosti ekonomichnoho rozvytku. [Mechanisms of regulation of digitization processes to ensure nationally rooted resilience of economic development], Financial Space, 189, рр. 283-290. DOI: https://doi.org/10.3 2782/2224-6282/189-50 [in Ukrainian]

Mishchenko, V. (2023). Upravlinnia kiberbezpekoiu v systemi zabezpechennia natsionalno ukorinenoi stiikosti ekonomichnoho rozvytku. [Cyber security management in the system for ensuring nationally rooted resilience of economic development]. Economic Theory, 1, pp. 47-72. DOI: https://doi.org/10.15407/etet2023.01.047 [in Ukrainian]

Isherwood, R., & Hancock, B. (1979). Household Expenditure on Fuel: Distributional Aspects; Economic Adviser’s Office. DHSS: London, UK.

Boardman. B. (1991). Fuel poverty: from cold homes to affordable warmth. Belhaven Press. 267 p.

Council of the European Union. (2023). Proposal for a Directive of the European Parliament and of the Council on Energy Efficiency (recast) Available at: https://data.consilium.europa.eu/doc/document/ST-7446-2023-INIT/en/pdf

IEA. (2024). IEA Data and Statistics. Available at: https://www.iea.org/data-and-statistics

EU. (2025). Eurostat. Database. Available at: https://ec.europa.eu/eurostat/en/

UNDP (2025). Ukraine – Fourth Rapid Damage and Needs Assessment (RDNA4). Available at: https://www.undp.org/ukraine/publications/ukraine-fourth-rapid-damage-and-needs-assessment-rdna4-february-2022-december-2024-english

The State Statistics Service of Ukraine (2025). Statistical Information. Available at: https://www.ukrstat.gov.ua/

World Bank. (2024b). Resilience. reliance. readjustment: How Ukrainians are coping with the war. Available at: https://www.worldbank.org/en/news/opinion/2024/06/11/resilience-reliance-readjustment-how-ukrainians-are-coping-with-the-war

Article views: 0
PDF Downloads: 0
Published
2025-06-30
How to Cite
Naumenkova, S., & Tishchenko, I. (2025). ENERGY POVERTY: ECONOMIC DEFINITION AND MEASUREMENT FEATURES. Economy and Society, (76). https://doi.org/10.32782/2524-0072/2025-76-72
Section
ECONOMICS