Village and Development

Village and Development

Spatio-Temporal Distribution of Energy Poverty of Rural Households in Iran

Document Type : Original Article

Authors
1 MSc Student of Agricultural Economics, Department of Agricultural Economics, Shiraz University, Shiraz, Iran
2 Associate Professor of Agricultural Economics, Department of Agricultural Economics, Shiraz University, Shiraz, Iran.
Abstract
Abstract
Introduction
Poverty has various dimensions and can be defined and divided according to each of these. The most important aspect of poverty that has been emphasized so far is income poverty. However, due to the shortcomings of income-based measurement criteria in assessing the various dimensions of poverty, efforts have been made to define non-income dimensions, such as energy poverty indicators and other criteria. Energy poverty has emerged as a subcategory of poverty, with various indicators examined based on each country's specific context. Energy poverty, as a multidimensional concept, encompasses various aspects of access to energy, usage, and inequality, and different indicators have also been analyzed according to the structure of each country. The investigation of energy poverty status in different countries indicates that the distribution of poverty varies due to diverse economic, social, cultural, and other conditions. Given the lack of studies on energy poverty in Iran and the novelty of the issue, the main goal of the present study is to evaluate and analyze the spatio-temporal aspects of energy poverty in rural areas of Iran, broken down by province. It is worth mentioning that this study, as the first domestic research, not only examined various indicators of energy poverty in the country but also created a spatio-temporal map of energy poverty.
Materials and Methods
In this study, various indicators of energy poverty were used, including the 10 percent index, Low Income High Cost (LIHC) index, 2M index, and the relative 2M index. The relative index, inspired by the 2M index, was designed as one of the innovations of this research and was calculated for rural areas in Iran over the years. Additionally, a spatio-temporal map of rural households' energy poverty was created in different years. The data required for the years 2001, 2011 and 2021 were collected from the income and expenditure data of the Statistical Center of Iran.
Results and Discussion
The results of the study showed that with an increase in income, energy poverty decreases in urban areas. The results also indicate a decrease in energy poverty in most rural areas in 2021 compared to the years 2011 and 2001. However, in the rural areas of Sistan and Baluchestan, Khuzestan, Hormozgan, and Fars, the number of households facing energy poverty has increased. For instance, the rural areas of Khuzestan Province have experienced the highest rise in energy poverty, with the percentage of poor households increasing from 2.89% in 2001 to 7.82% in 2021. Similarly, the percentage of rural households facing energy poverty in Sistan and Baluchestan Province has also climbed from 9.95% in 2001 to 13.37% in 2021.
Conclusions
The study highlights that energy poverty is a subcategory of poverty, affecting many households in rural areas of Iran. Compared to the years 2001 and 2011, the study's results show a decrease in energy poverty in most rural areas of Iran in 2021. However, the study also reveals that some provinces are still grappling with increasing energy poverty rates. Therefore, energy poverty in these provinces must be examined more closely. Consequently, policymakers in the energy sector should concentrate on targeted interventions to reduce energy poverty in these areas. Some proposed solutions include improving access to energy infrastructure, increasing financial assistance, and enhancing energy efficiency in the rural areas of these provinces. Additionally, the study's results highlight the development of renewable energy resources such as solar and wind energy, which can help alleviate energy poverty in rural regions of Iran.
Keywords

Subjects


  1. Al Kez, D., Foley, A., Lowans, C. & Del Rio, D.F. (2024). Energy poverty assessment: Indicators and implications for developing and developed countries. Energy Conversion and Management, 307, 118324.
  2. Awan, A., & Bilgili, F. (2022). Energy poverty trends and determinants inPakistan: Empirical evidence from eight waves of HIES 1998–2019. Renewable and Sustainable Energy Reviews, 158, 112157. https://doi.org/10.1016/j.rser.2022.112157.
  3. Ayodele, T.R., Ogunjuyigbe, A.S.O. & Opebiyi, A.A. (2018). Electrical energy poverty among micro-enterprises: Indices estimation approach for the city of Ibadan, Nigeria. Sustainable Cities and Society, 37, 344-357. https://doi.org/10.1016/j.scs.2017.10.007.
  4. Barnes, D.F., Khandker, S.R. & Samad, H.A. (2011). Energy poverty in rural Bangladesh. Energy Policy, 39(2), 894-904. https://doi.org/10.1016/j.enpol.2010.11.014.
  5. Belaïd, F. (2018). Exposure and risk to fuel poverty in France: Examining the extent of the fuel precariousness and its salient determinants. Energy Policy, 114, 189-200. https://doi.org/10.1016/j.enpol.2017.12.005
  6. Boardman, B. (1991). Fuel poverty: From cold homes to affordable warmth. Pinter Pub Limited.
  7. Castaño-Rosa, R., Sherriff, G., Solís-Guzmán, J. & Marrero, M. (2020). The validity of the index of vulnerable homes: Evidence from consumers vulnerable to energy poverty in the UK. Energy Sources, Part B: Economics, Planning, and Policy, 15(2), 72-91. https://doi.org/10.1080/15567249.2020.1717677.
  8. Dagoumas, A., & Kitsios, F. (2014). Assessing the impact of the economic crisis on energy poverty in Greece. Sustainable Cities and Society, 13, 267-278. https://doi.org/10.1016/j.scs.2014.02.004.
  9. Farrell, L., & Fry, J. M. (2021). Australia's gambling epidemic and energy poverty. Energy Economics, 97, 105218. https://doi.org/10.1016/j.eneco.2021.105218.
  10. González-Eguino, M. (2015). Energy poverty: An overview. Renewable and Sustainable Energy Reviews, 47, 377-385. https://doi.org/10.1016/j.rser.2015.03.013.
  11. Heindl, P., & Schüssler, R. (2015). Dynamic properties of energy affordability measures. Energy Policy, 86, 123-132. https://doi.org/10.1016/j.enpol.2015.06.044.
  12. Hernández, D. (2015). Sacrifice along the energy continuum: A call for energy justice. Environmental Justice, 8(4), 151-156. https://doi.org/10.1089/env.2015.0015.
  13. Hills, J. (2012). Getting the measure of fuel poverty: Final Report of the Fuel Poverty Review.
  14. Kanagawa, M., & Nakata, T. (2006, September). Socio-economic impacts of energy poverty alleviation in rural areas of developing countries. In Proceedings of the 26th USAEE/IAEE North American Conference, Ann Arbor, MI, USA.
  15. Khosravinejad, A. (2011). Estimation of Poverty Indices in Iranian Urban and Rural Households, Economic Modeling, 18, 39-60. [In Persian]
  16. Malah, Sh. (2020) Energy and water poverty in Iran, Ministry of cooperatives, labor, and social welfare. [In Persian]
  17. Maryon-Davis, A., & Ballard, T. (2014). Fuel Poverty: Tackling Cold Homes and Ill-health. London: In Health Forum.
  18. Mattioli, G., Wadud, Z. & Lucas, K. (2018). Vulnerability to fuel price increases in the UK: A household level analysis. Transportation Research Part A: Policy and Practice, 113, 227-242. https://doi.org/10.1016/j.tra.2018.04.002.
  19. Moore, R. (2012). Definitions of fuel poverty: Implications for policy. Energy policy, 49, 19-26. https://doi.org/10.1016/j.enpol.2012.01.057.
  20. Pye, S., Dobbins, A., Baffert, C., Brajković, J., Deane, P. & De Miglio, R. (2017). Energy poverty across the EU: Analysis of policies and measures. In Europe's Energy Transition. Academic Press. https://doi.org/10.1016/B978-0-12-809806-6.00030-4.
  21. Romero, J. C., Linares, P. & López, X. (2018). The policy implications of energy poverty indicators. Energy Policy, 115, 98-108. https://doi.org/10.1016/j.enpol.2017.12.054.
  22. Sen, A. (1976). Poverty: An ordinal approach to measurement econometrica. https://doi.org/10.2307/1912718.
  23. Sen, A., Sen, M.A., Foster, J.E., Amartya, S. & Foster, J. E. (1997). On economic inequality. Oxford University Press.
  24. Sokołowski, J., Lewandowski, P., Kiełczewska, A. & Bouzarovski, S. (2019). Measuring energy poverty in Poland with the multidimensional energy poverty index. In IBS Working Paper 07/2019.
  25. Statistical Center of Iran. (2024). Available at: www.amar.org.ir. [In Persian]
  26. Streimikiene, D., Lekavičius, V., Baležentis, T., Kyriakopoulos, G.L. & Abrhám, J. (2020). Climate change mitigation policies targeting households and addressing energy poverty in European Union. Energies, 13(13), 3389. https://doi.org/10.3390/en13133389.
  27. Team, A., & Baffert, C. (2015). Energy poverty and vulnerable consumers in the energy sector across the EU: Analysis of policies and measures. Policy, 2, 64-89.
  28. Townsend, P. (1979). Poverty in the United Kingdom: A survey of household resources and standards of living. Univ of California Press.
  29. Townsend, P. (1985). A sociological approach to the measurement of poverty—a rejoinder to Professor Amartya Sen. Oxford Economic Papers, 37(4), 659-668. https://doi.org/10.1093/oxfordjournals.oep.a041715.
  30. United Nations Development Programme. (2000). World energy assessment: Energy and the challenge of sustainability (1st ed.). New York: UNDP.
  31. Walker, R., McKenzie, P., Liddell, C. & Morris, C. (2014). Estimating fuel poverty at household level: An integrated approach. Energy and Buildings, 80, 469-479. https://doi.org/10.1016/j.enbuild.2014.06.004.
  32. Winkler, H., Simões, A.F., La Rovere, E.L., Alam, M., Rahman, A. & Mwakasonda, S. (2011). Access and affordability of electricity in developing countries. World Development, 39(6), 1037-1050. https://doi.org/10.1016/j.worlddev.2010.02.021.