Energy poverty in the face of environmental challenges
Energy poverty – questions of definition
Poland, like the vast majority of European Union countries, lacks a fully formed definition of energy poverty or an official indicator to monitor the scale of this phenomenon (Owczarek, Miazga 2015). Energy poverty, in general, can be defined as the phenomenon of experiencing difficulties in satisfying basic energy needs in the place of residence at a reasonable price, without lowering the basic standards of biological and social functioning of household members (Owczarek, Miazga 2015).
Undoubtedly, energy poverty, apart from being related to the energy functioning of households, is associated with poverty understood in economic terms - as deprivation of access to material goods and resources, but these areas of deprivation should not be equated. The phenomenon of energy poverty should be considered in two aspects: financial and technical. The former is determined by household wealth and fuel prices, while the latter is conditioned by the technical capacity to heat dwellings (Szamrej-Baran, 2016).
Causes of energy poverty
The problem of energy poverty is multidimensional, hence its solution cannot be encapsulated in a single sectoral policy and all the causes that foster the phenomenon should be analyzed. Three types of causes resulting in energy poverty are indicated (Węglarz, Kubalski, Owczarek 2014):
Possible consequences of fuel poverty
There are many areas in which fuel poverty brings negative consequences. On a society-wide level, it generates public costs (healthcare, education system) and reduces the potential for development in terms of social and economic capital. In turn, bearing in mind the perspective of the individual, it adversely impacts physical health, but also mental health (Szamrej-Baran, 2016). It is known from the literature that energy poverty, which is expressed, among other things, in underheating of rooms and, as a result, leads, for example, to the growth of harmful microorganisms, results in a higher likelihood of respiratory diseases, allergies (in the case of excessively humid and fungal dwellings), hormonal and cardiovascular disorders, deterioration of mental well-being (stress, anxiety, depressed mood) or a general weakening of the body's immunity (Liddell, Morris, 2010).
Other consequences of the phenomenon include households incurring debts and falling into a debt spiral. Energy poverty also contributes to housing degradation. Improperly insulated windows, walls and doors, cause heat loss and result in higher indoor humidity. Finally, it goes without saying that increased CO2 emissions from individual households, especially those that are energy poor and rely on inefficient heating, often using non-organic, low-quality fuels and old stoves, leads to poorer air quality (Szamrej-Baran, 2016).
Reducing the scale of energy poverty is likely to bring proportional social, environmental and economic benefits, while pursuing the model of sustainable development, which is enshrined in many strategic documents, including the Basic Law.
Scale and scope of the phenomenon in Poland
Energy poverty in Poland has not yet received a commonly accepted definition or an unquestionable measure. However, despite the lack of consensus among the research, academic, governmental and non-governmental communities, studies have been carried out that make it possible to initially determine its scale, taking into account the specific features of Central and Eastern Europe. Such research and analyses are carried out, among others, by the Institute of Structural Research, the Institute of Labor and Social Affairs, the Institute for Sustainable Development, the Institute of Public Affairs or the Social Research Laboratory of the Warsaw University of Life Sciences. Depending on the indicator applied, "the share of energy poor households oscillates between 2.2% and 18% (data for 2017). Moreover, different indicators identify different subpopulations as the most vulnerable in Poland. By way of example, objective indicators show that it is the residents of single-family houses who are most at risk of energy poverty, while subjective indicators show that it is the residents of old multifamily buildings who are most likely to suffer from energy poverty" (Sokolowski et al., 2019).
In the analytical context, the efforts of researchers at the Institute for Structural Research (IBS) who, based on data from the Household Budget Survey, have proposed a unified poverty index comprising five of its components, taking into account both objective and subjective coefficients of energy deprivation, are also noteworthy. The objective dimension includes the Low Income High Costs (LIHC) indicator and the amount of electricity expenditure as a share of income. In turn, the subjective dimension includes three exponents: the inability to adequately heat the home, the incidence of dampness, and the difficulty in settling utility bills. Considering the multidimensional energy poverty indicator, in 2017, energy poor households accounted for 10% of households in Poland, and about half of them were also impoverished in terms of income. According to estimates, "households living in buildings built before 1946, households living in rural areas, and households that subsisted on pensions and unearned income sources were particularly vulnerable to energy poverty" (Sokolowski et al., 2019).
Counteracting the phenomenon of energy poverty in the context of challenges to improve air quality
An effective solution to the problem of energy poverty should address each type of the foregoing causes of the phenomenon, which in turn requires an integrated package of instruments. Hence, the preparation of a complementary set of public policies should be the subject of an integrated work of representatives of relevant ministries responsible for the above-mentioned areas.
Overview of current and recommended instruments to support the energy poor in Poland
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Causes
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In technical terms
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In economic terms
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In terms of attitudes
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Single-family housing
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Multi-family housing
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Towns with up to 100,000 inhabitants
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The "Clean Air" Program
Thermomodernization and Renovation Program (further details after amendment)
Grant program for NGOs*
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Thermomodernization and Renovation Program:
Grant program for NGOs*
Development of communal and social housing (TBS)
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Energy allowance
Purpose-specific benefit
Lump sum for heating
Energy allowance
Bill repayment scheme
Social tariff / bill subsidy*
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Local protection programmes (e.g. Kraków)
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Education programs in public education*
Information campaigns (including as part of audit-based investment programs
Guidebooks, calculators, the Internet, etc.
Social services (social work, NGOs)*
Energy consulting*
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Towns with more than 100,000 inhabitants
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Thermomodernization and Renovation Program (further details after amendment)
Grant program for NGOs*
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Local programs, e.g: Thermomodernization Program in Kraków
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Source: Own study
*Programmes marked in italics are recommended programmes, other instruments are operating in the current legal syste
The review of public policies targeted at the energy poor is based on an expert report prepared by Dominik Owczarek of the Institute of Public Affairs at the request of the Ministry of Entrepreneurship and Technology in 2019.
Authors:
Rafał Boguszewski, SGGW
Tomasz Herudziński, SGGW
Dominik Owczarek, ISP
Bibliography:
Herudziński, T., Boguszewski, R., Owczarek, D., Bondyra, K. (2019). Ubóstwo energetyczne w obliczu regulacji przeciwdziałających zanieczyszczeniu powietrza, Wydawnictwo SGGW, Warszawa.
Liddell, C. i Morris, C. (2010). Fuel poverty and human health: a review of the recent evidence. Energy Policy, 38(6), s. 2987–2997, http://www.sciencedirect.com/science/article/pii/S0301421510000625
Miazga, A., Owczarek, D. (2015) Dom zimny, dom ciemny, czyli ubóstwo energetyczne w Polsce, Instytut Badań Strukturalnych, Warszawa, http://ibs.org.pl/publications/domzimny-dom-ciemny-czyli-ubostwo-energetyczne-w-polsce/
Owczarek, D. i Miazga, A. (2015). Ubóstwo energetyczne w Polsce – definicja i charakterystyka społeczna grupy, Instytut na Rzecz Ekorozwoju, Warszawa, http://www.chronmyklimat.pl/biblioteka/ksiazki-raporty/ubostwo-energetyczne-definicja-i-charakterystyka-spoleczna-grupy
Szamrej-Baran, I. (2016). Ranking krajów UE ze względu na ubóstwo energetyczne, Uniwersytet Łódzki, http://repozytorium.uni.lodz.pl:8080/xmlui/handle/11089/21054
Sokołowski, J., Lewandowski, P., Kiełczewska, A., Bouzarovski, S. (2019). Measuring Energy Poverty in Poland with the Multidimensional Energy Poverty Index, w: IBS Working Paper 07/2019.
Węglarz, A., Kubalski, G. i Owczarek, D. (2014). Propozycje mechanizmów wsparcia procesu przeciwdziałania zjawisku ubóstwa energetycznego w Polsce, Instytut na Rzecz Ekorozwoju, http://www.ineisd.org.pl/theme/UploadFiles/File/publikacje/broszury/broszura_ine__ubostwo_www.pdf