Renewable energy drives energy poverty

July 2019: New evidence argues that current policies such as taxes or subsidies to incentivise a shift from fossil fuels to renewable energy consumption may indirectly drive energy poverty and social exclusion, since low-income households are unable to afford increased utility prices.

Information

A new study reports that efforts to shift away from fossil fuels towards renewable energy may have the unintended consequence of increasing energy poverty, with low income households having inadequate access to energy services such as heating, cooling, lighting, and use of appliances due to higher utility rates. The study argues that current policies focussing on taxes or subsidies disproportionately favour people that can afford to install solar panels or to invest in energy-efficient appliances, but may increase the cost of energy and insufficiently allowing access to affordable energy for people from lower economic backgrounds.

Implications & Opportunities

The researchers argue that energy should be seen as a human right and that increasing energy poverty indirectly drives social exclusion. They recommend redesigning existing policy frameworks to simultaneously reduce emissions and inequality.

Limitations

The study only focuses on the social effects of replacing fossil fuels with renewable energy in developed nations and should be seen within the context of its geographic setting. It excludes rural areas in South-East Asia or sub-Saharan Africa, but acknowledges that in areas with no previous use of fossil fuels, access to renewable energy such as solar can alleviate energy poverty and drive social inclusion.

Sources

McGee, J. A., & Greiner, P. T. (2019). Renewable energy injustice: The socio-environmental implications of renewable energy consumption. Energy Research & Social Science, 56, 101214. doi:10.1016/j.erss.2019.05.024 

Eurasia Review. (2019). Shifts to renewables energy can drive up energy poverty. Retrieved from https://www.eurasiareview.com/13072019-shifts-to-renewable-energy-can-drive-up-energy-poverty/