Energy Efficiency and Energy Poverty in Dutch Households

Abstract

The residential energy consumption and energy affordability are crucial in policy design, with regard to energy efficiency and energy poverty. This has become even more relevant now, as the energy transition is taking off and the energy prices are soaring. Given the inequality in the energy consumption and energy affordability, it is therefore critical to know which factors are impacting these phenomena, and how they are impacting these phenomena. The housing-related factors are the least understood factors impacting the energy consumption and energy affordability, even though these factors are key pillars of energy policy. Thus, this research assesses how housing-related factors impact the residential energy consumption and energy affordability in the Netherlands. For this assessment, multiple data sources are combined over the years 2016 to 2018, covering a total of more than 8 million Dutch households. A regression analysis is performed on a postal code 6 level using the housing-related factors as predictors, while controlling for socio-demographic and weather factors. This revealed that the housing-related factors impacting energy consumption and energy affordability are relatively similar. This study finds that the WOZ-value is a strong predictor for both phenomena as houses with a higher WOZ-value have a lower energy efficiency. Furthermore, it shows that rental households consume less energy but spend a similar percentage of their income on energy, and that the impact of the year of construction on both phenomena has increased significantly, when compared to earlier studies. Based on this, it is concluded that rental houses and houses with an older year of construction deserve more attention in Dutch energy policy. Furthermore, low-income households should be targeted in short-term energy policy, as this study shows that the current soaring energy prices have a severe impact on the energy affordability in the Netherlands. Insights are however broader, and can be pivotal in energy demand and energy affordability projections, both in the Netherlands and the rest of Western Europe.