Energy Affordability and Subjective Well-Being: Evidence for European Countries

This paper uses data on the life satisfaction of more than 100,000 individuals in 21 European countries from 2002 to 2011, to study the relationship between subjective well-being and the affordability for households of electricity, heating oil and natural gas. We find that energy prices have statist...

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Bibliographic Details
Published in:The Energy journal (Cambridge, Mass.) Mass.), 2017-05, Vol.38 (3), p.159-176
Main Authors: Welsch, Heinz, Biermann, Philipp
Format: Article
Language:English
Subjects:
Analysis
Economic aspects
Economic models
Energy
Energy consumption
Energy industry
Energy poverty
Energy prices
Expenditures
Forecasts and trends
Fuel oil
Households
Natural gas
Nuclear energy
Poverty
Psychological factors
Quality of life
Residential energy
Statistical analysis
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Summary:This paper uses data on the life satisfaction of more than 100,000 individuals in 21 European countries from 2002 to 2011, to study the relationship between subjective well-being and the affordability for households of electricity, heating oil and natural gas. We find that energy prices have statistically and economically significant effects on subjective well-being. The effect sizes are smaller than but comparable to the effects of important personal factors of well-being. Effects above average are found in individuals from the lowest income quartile. In addition, effects are strongest at times when required energy expenditures can be expected to be high. The empirical results are consistent with the prediction that greater fuel poverty implies a greater effect of energy prices on well-being.
ISSN:0195-6574
1944-9089
DOI:10.5547/01956574.38.3.hwel