Energy Poverty in Europe: How Energy Efficiency and Renewables Can Help-CEB


Energy Poverty in Europe: How Energy Efficiency and Renewables Can Help

The Council of Europe Development Bank (CEB) published its latest study which examines the state of energy poverty in Europe, its causes, and how energy efficiency can work to eliminate it. A quantitative empirical analysis explores the complex economic and policy relationships that can help reduce a problem that should not exist in modern day Europe.

Governments across Europe have been working to implement more policies to promote energy efficiency in homes and the push for renewable energy will be a crucial driver to combat energy poverty when accompanied by household energy efficiency improvements. The study’s empirical analysis shows that energy efficiency improvements and related regulatory policies contribute to decreases in household energy consumption and energy poverty rates.

  • Household energy spending can decrease by 2.4% to 7.1% after a 10% increase in the household energy efficiency score.
  • Household energy consumption may drop by 4.4% several years after governments undertake and implement a typical high impact energy efficiency policy that sets minimum regulatory standards on household energy efficiency.
  • Energy poverty rates also tend to drop by 2.1% when energy efficiency index scores increase by 10%, thus showing the direct effect of energy efficiency in helping reduce energy-related economic vulnerability.