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Does renewable energy alleviate energy poverty in the European Union?

Rios Rios, A.I. (2024) Does renewable energy alleviate energy poverty in the European Union?

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Abstract:This master thesis tries to determinate whether the increase in the consumption and production of renewable electricity can mitigate energy poverty (EP) in the European Union (EU) between 2013 and 2022. Employing a quantitative method the research seeks for determinate the statistical relationship between EP indicators and the consumption and production of renewable electricity in three geographic units: the EU, Denmark and Greece. To achieve the objectives of the research an empirical energy poverty model was built based on the literature review. In general, to estimate the correlation between the independent and dependent variables I used Generalized Linear Models (GLM). EP was measured using three single indicators, and a combination of them following Rodriguez-Alvarez et al. (2021). They were also used to examine the context of energy poverty in the EU. Thus, it was concluded that EP represents a complex socio-economic phenomenon that cannot be measured using a single indicator. Likewise, the large gaps between indicators at supranational and national levels show that this challenge must be addressed from a local perspective to avoid erroneous generalizations. The independent variables are composed by three mechanisms through energy transition can alleviate EP, the rate of consumption and production of renewable electricity, and one control variable. To analyze the statistical relevance of them I run 12 GLM. The models’ results elucidate that the reduction of EP is more linked to socio-economic factors than to the consumption and production of renewable electricity. Thus, controlling electricity costs, reducing income inequalities and mitigating monetary poverty show greater influence on EP levels. Furthermore, the results can be framed in two different approaches to tackling EP in the EU. The first one implemented in countries like Denmark where the use of energy subsidies has kept EP levels low. And the second applied in countries such as Greece where policies have been developed to attack the causes of this challenge such as high electricity prices or low levels of energy security. In summary, the results suggest the need to approach EP from a local rather than a supranational perspective. They also emphasize high electricity prices and socio-economic conditions as the factors that have had the greatest impact on energy poverty levels in the EU.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:43 environmental science, 70 social sciences in general
Programme:Environmental and Energy Management MSc (69319)
Link to this item:https://purl.utwente.nl/essays/102480
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