Outline of Presentation. Fuel Poverty: Some Definitions. Policy Context. Combat Poverty Agency Research Seminar - 7 December

Transcription

1 Outline of Presentation Fuel Poverty and Policy: Ireland in the EU Context Dr Jonathan Healy Policy & Research Analyst Combat Poverty Agency 7 th December 24 Policy context Fuel poverty national longitudinal results Comparative analysis Socio-economic & socio-demographic results Severity of experience Policy blockages Policy implications International policy responses Policy recommendations Fuel Poverty: Some Definitions The inability to attain adequate household warmth for 1% of household income (Boardman, 1991) Policy Context 1. Ownership levels of domestic energyefficiency measures relatively low The inability to heat the home to an adequate (safe, comfortable) temperature due to low household income and poor domestic energy efficiency (Clinch and Healy, 1999) 1 Domestic Energy-Efficiency Standards in Europe Cavity-wall insulation (%) Double-glazing (%) Floor insulation (%) Roof insulation (%) Irish Energy-Efficiency Standards % Households % households Lagging jacket Floor insulation Roof insulation Wall insulation Double glazing Draught stripping 37 4 Low-energy light bulbs 29 Central heating D DK NL B F UK IRL EL P A FIN S NOR Mean Combat Poverty Agency Research Seminar - 7 December 24 1

2 Policy Context (cont.) 2. Fuel poverty thought to be highest in Anglo-Saxon countries Lack of comparable international data Policy Context (cont.) 3. Excess fuel consumption results in excess environmental emissions CO 2 SO 2 NO x PM 1 Policy Context (cont.) 4. Environmental policy agreements - Kyoto - Gothenburg Policy Context (cont.). Adverse health effects Excess winter mortality Excess winter morbidity Excess Winter Mortality (Mean, ) 3 Policy Context (cont.) 6. Rising outlay on fuel allowance 27, households EWM (%) Expenditure on the Fuel Allowance in Ireland ( ) 9, 8, 7, 6,, 4, Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain UK EU-14 3, 2, 1, Combat Poverty Agency Research Seminar - 7 December 24 2

3 Fuel Poverty Comparison: Methodology Newly developed Consensual approach ECHP data, UCD national household survey, 21 Suite of subjective and objective indicators (socially perceived necessities) Severity of experience Persistence Socio-economic analysis Data ECHP longitudinal data (1994-2) (N=6,) UCD UII NHS (21) (N=1,) Subjective and objective indicators (ECHP) Households unable to heat home adequately Households unable to pay utility bills during past year Households without central heating/electric-storage heaters Households with a lack of heating facilities Households with damp walls or floors Households with rotten window frames Composite Sensitivity Analysis Ability to heat home adequately : 3-point response variable (UCD) National Results (ECHP) Indicator of fuel poverty Mean # Homes Unable to heat home ,4 Unable to pay utility bills ,4 Inadequate heating facilities ,9 Presence of damp ,6 Lacking central heating ,2 Rotten windows , Persistent Fuel Poverty in EU-14 (ECHP Composite Results) 2 1 D DK NL B L F UK IRL I EL E P A FIN Severity of Fuel Poverty (21): Ability to Heat Home Adequately % of households No. households 1 Some difficulties ( intermittent ) , 2 Usually not 2. 33, 3 Never , Chronic fuel-poor (2+3) , Total fuel-poor (1+2+3) , How Does This Compare? UCD self-reported measure: 17.4% CSO HBS quantitative definition: 2.7% Combat Poverty Agency Research Seminar - 7 December 24 3

4 Persistent-v-Intermittent Fuel Poverty Persistent Fuel Poverty by House Type Usually not 14% Never 13% Some difficulties ( intermittent ) 73% Detached Semi-Detached/Te... Small MFDs Other % FP mean N hholds FP 97 using mean incidence Persistent Fuel Poverty by Social Group % FP Mean N hholds FP 97 using Mean Incidence Persistent Fuel Poverty by Housing Tenure % FP # FP male aged male aged 6+ 1 female aged female aged 6+ Single parent (All children <16) Single parent ( 16+) Couple w ithout children ( Couple w ithout children (both <6) Couple w ith 1 child Couple w ith 2 children Couple w ith 3+ children Couple w ith 1+ children (at least 1 aged 16+) Other households % households Owner Tenant Rent-Free # households Persistent Fuel Poverty by Main Income Source Aggregate Fuel Poverty by Location % FP Mean N hholds FP 97 using Mean Incidence To be inserted Selfemployed/Farming Wages (employee) Pensions Unemployed Other social transfers Private Dublin City Other city Large town Small town Rural/village % FP 1 N hholds FP Combat Poverty Agency Research Seminar - 7 December 24 4

5 Aggregate Fuel Poverty by Marital Status Aggregate Fuel Poverty by Educational Attainment Single Married Co-habiting Separated/Divorced/ Wi... % FP 1 N hholds FP Primary Lwr. secondary Upr. sec. Tech/VOC Upr. sec. Leaving Cert. Upr. sec. both Tech &... 3rd level non-degree 3rd level primary degree % FP 1 N hholds FP 1 3rd level prof. qual Aggregate Fuel Poverty by Dwelling Age Aggregate Fuel Poverty by Occupancy 3 6, Pre to date 12, 1, 8, 6, 4, 2, , 4, 3, 2, 1, Total % FP 1 N households FP 1 Total % FP 1 N households FP 1 Aggregate Fuel Poverty by Social Class Aggregate Fuel Poverty by Main Income Source A B C1 C2 D E % households Wages Social Welfare % fuel-poor % fp 1 N hholds FP 1 Combat Poverty Agency Research Seminar - 7 December 24

6 Aggregate Fuel Poverty by Employment Status Aggregate Fuel Poverty by Income Selfemployed Employee (full-time) Employee (Part-time) Unemployed/ Seeking work/ Seeking work For 1st time/not working and not seeking work At Home Ill/Disabled Total % FP 1 N households FP 1 Retired Student/Govt. training/govt. work scheme 6,, 4, 3, 2, 1, < 8,888 8,889-12,696 12,697-19,4 19,46-2,393 2,39-33,12 33,13-38,91 Total % FP 1 N households FP 1 38,92 8, 7, 6,, 4, 3, 2, 1, Aggregate Fuel Poverty by # Dependent Children Aggregate Fuel Poverty by Housing Tenure (21) 4 9, , Total % FP 1 N households FP Owned outright Owned (Mortgage) Rent (Private) Rent (Local Auth.) Total % FP 1 N households FP 1 7, 6,, 4, 3, 2, 1, Persistent Fuel Poverty (% Households) Summary Persistent fuel poverty fell 3% Persisent Fuel Poverty 227, homes (17.4%) suffer fuel poverty in 21 27% persistent Household risk groups: Lone parents (4.2%) Low-income (39.%) Unskilled (34.6%) LA tenants (33.8%) Social-welfare recipients (33.6%) Combat Poverty Agency Research Seminar - 7 December 24 6

7 Why Are Energy-Efficiency Standards Low? Policy Responses in Selected Countries: The Exemplars Don't w ant to borrow 3% Higher priorities 6% Not aw are of existence 19% Rent - Not responsible 3% Don't w ant disruption 3% Not aw are of benefits 34% Can't afford 32% Denmark Grants to low-income households from 197 Tax credits from late 197s Germany Grants and tax breaks in late 197s Information Netherlands Ad hoc grants in early 197s via national insulation programme Energy tax 199s to date Info provision and strong technology-based R&D Norway Stringent building regulations since 196s Tax breaks for owner-occupiers Subsidisation of tenants in 197s and 198s Policy Responses: Anglo-Saxon Ireland Traditionally income subsidisation of poor homes Ad hoc grant schemes in 198s Currently, information provision and rich voluntary and academic sector R&D input Small low-income grant scheme introduced 23 UK Building Regulation from late 197s Strong information provision Comprehensive grant schemes for poor homes Significant voluntary sector input Seminal R&D Policy Responses: The Laggards Italy Limited grant aid and income supplements France Voluntary sector involvement Limited income supplements USA Tax breaks and subsidisation of low-income homes via federal weatherisation programmes Building regulations since 1976 Policy Recommendations 1. Implement national low-income energy-efficiency programme Prioritise double glazing, floor and cavity-wall insulation measures Target 24, homes p.a. for 1 cost of 4m p.a. Private and social housing sectors included 2. Raise revenue through carbon/energy tax Revenue recycling to safeguard low-income households from inflationary price effects of carbon tax Tapered (means-tested) partial and full-cost grants to low-income owner-occupier households (avoids free-riders ) Policy Recommendations (cont.) 3. Regulate to improve thermal standards in private rental sector which has highest poverty risk 4. Social housing remedial works programmes to continue with additional funds as necessary. Minimise transactions costs for high-income owner-occupiers 6. Avoid tax credits: risky, inefficient, regressive and unlikely in current economic climate 7. Strong State-led information campaign (SEI) Combat Poverty Agency Research Seminar - 7 December 24 7

8 Policy Recommendations (cont.) 8. Retain current fuel allowance Reduces severity of experience Increase to compensate poor households if carbon tax introduced 9. Action research to demonstrate actual (ex post) benefits of retrofit (inter-institutional, cross-border) What about EU-2? 1. Leadership of programme through champion of energy efficiency and fuel poverty with State support (SEI) Combat Poverty Agency Research Seminar - 7 December 24 8