Impact of Rising Energy Prices on Households: Empirical Analysis Using the Fuel Poverty Index
Abstract
This study aims to propose a policy-relevant sustainability-indicator approach by empirically quantifying household vulnerability to rising energy prices in Japan and translating mitigation options into changes in the fuel-poor headcount using a transparent fuel poverty index framework. This study conducted a web-based survey of residents within the service areas of the Tokyo Electric Power Company and Kyushu Electric Power Company in Japan to collect data on household income and fuel costs from 2021 to 2022. The proportions of fuel-poor households in the Tokyo Electric Power Company and Kyushu Electric Power Company service areas in 2022 were 5.4% and 7.6%, respectively. Setting the air conditioner temperature to 28℃ decreased the number of fuel-poor households by 43.8% and 40.7% in the Tokyo Electric Power Company and Kyushu Electric Power Company service areas, respectively. To support households that are vulnerable to rising energy prices, promoting energy-saving measures, such as setting air conditioners to an appropriate temperature, is an effective approach.