Gonzalo H Soto and Xavier Martinez-Cobas explore the impact of the shift to a green economy on energy poverty. Energy poverty occurs when households struggle to afford adequate energy services such as heating, cooling, and electricity. With the European Union’s commitment to transitioning to a low-carbon economy and increasing the use of renewable energy, it is essential to ensure a fair transition that also takes into account the economic and social implications.
The study reveals that higher GDP per capita may be linked to increased energy consumption, leading high-income households to use more energy in their daily activities, generating increasing difficulties for lower-income individuals to follow suit. Additionally, increased industrial productivity can contribute to the rise in energy poverty as it often requires higher energy consumption to sustain production, raising energy prices that affect vulnerable individuals. Lastly, limited and expensive access to renewable energy can lead to a greater reliance on fossil fuel consumption. Policymakers should increase their support to shield lower-income households as renewable energy share in the energy mix grows. This could involve targeted subsidies or direct financial assistance.
In addition, improving energy productivity alleviates considerably energy poverty. By enhancing energy efficiency, governments can mitigate the negative impact of rising energy prices. Increasing investment in new energy technologies, infrastructure updates, and promoting better energy management practices are crucial to decreasing energy costs. Finally, the study emphasizes that countries with strong regulatory systems are better equipped to ensure that the green transition does not harm low-income households. Cross-border cooperation and an honest communication campaign will complete this approach for a just energy transition.
