Energy poverty is a state when households are unable to access or afford sufficient energy for adequate living. The energy poverty discussion has been active for decades, but definitions and recognition of energy poor households remain vague. Primaril...
Energy poverty is a state when households are unable to access or afford sufficient energy for adequate living. The energy poverty discussion has been active for decades, but definitions and recognition of energy poor households remain vague. Primarily, energy poverty in developed countries has not received much attention because the numbers of vulnerable were not significantly high. This is also the case in Korea, where energy poverty persists despite the existence of legal standards and welfare programs. Currently, legal standards are not applied in energy welfare programs in Korea, and various characteristics specific to energy poor households in Korea are not considered when distributing assistance.
Therefore, this study aims to investigate energy poverty in Korea. The purpose of this study is to confirm the multidimensionality of energy poverty and propose the need to accurately target assistance to energy poor households as means to achieve energy justice. The multidimensional energy poverty index is utilized to explore the nature of energy poverty specific to Korean households. First, a comparison analysis between common energy poverty indexes, income standard index, Actual Ten Percent Rule (ATPR) index, and MEPI investigates the differences in energy poverty rates between indexes. Next, logistic regression and seasonal and spatial pattern analysis is conducted to observe the specific characteristics of energy poor households in Korea. Lastly, the originality of this study lies in that it utilized a single dataset and a multidimensional measurement that enables a holistic examination of energy poor households in Korea over a long period. Moreover, the implications of this study are drawn based on an energy justice framework by comparing the energy system in Korea with the cases of other developed countries.
The results of this study are the following. First, energy poverty rates in Korea have decreased, but still, a significant portion of the population is energy deprived. Current measurements of energy poverty centered on income standards overestimate the energy poor population in comparison to those estimated by the MEPI index. Similarly, energy poor households defined by the ATPR index are also larger in numbers compared to the MEPI index. Based on the overestimation results of energy poor households, the magnitude of economic inefficiencies was estimated and proved that the extent of loss could be substantial when applied to the entire population.
The subsequent results of this study confirm that aside from income, household, housing, and energy source characteristics were significantly related to energy poor households. Most results were consistent with past studies. However, results were contradictory regarding housing ownership, indicating that heterogeneity may be evident even among developed countries with similar characteristics. Moreover, seasonal and spatial patterns of energy poverty exist, and these results imply that surrounding environmental factors also have a relationship with energy deprivation. Thus, future threats like climate change need to be discussed as they can be detrimental to vulnerable people. Then, the components of MEPI were decomposed to observe the reasons behind the differences in energy poverty rates between regions and seasons. It was found that the income and energy consumption (ATPR) indicators alone could not explain the spatial and seasonal patterns of energy poverty in the year 2018. However, the energy efficiency component provided a probable explanation for the severe energy poverty rates in the Jeollanam-do and Gangwon-do provinces. The findings in this section confirmed the multidimensionality of energy poverty and were consistent with recent studies.
Despite the existence of legal standards, energy welfare programs have not clearly defined energy poverty in Korea. Due to the absence of a definite standard that discovers energy households, providing essential assistance to vulnerable households was challenging. Moreover, in terms of energy justice, the grounds for recognition justice are weak, which has hampered the implementation of distributive justice through welfare programs in Korea. Thus, it would be possible to target and deliver aid to households facing energy deprivation through a standard that can capture energy poor households and their multidimensional nature.