Does Energy Poverty Affect Energy Efficiency Investment Decisions? First Evidence from a Stated Choice Experiment

Energy poverty is a multidimensional and continuously growing societal problem, with political roots. In pursuit of mitigating the European Commission has adopted bundle policies, such as consumer protection measures, short-term financial interventions, motivations for energy efficiency (e.g., retrofits replacement old household appliance) information campaigns, among others. There no doubt, however, that increasing income vulnerable households would be most preferred effective option. Focusing on efficiency, measure typically incorporated in National Climate Plans (NECPs) many Member States means to fight poverty, this paper aims shed light need gradually move towards more localized—not say personalized—actions. direction, labeled choice-based experiment used, which involves hypothetical selection between three alternative i.e., house retrofit, upgrading heating system electrical appliances. The research integrate preferences from choice indicators establish connection investment decisions. results demonstrate households’ are affected by qualitative quantitative aspects vulnerability sociodemographic characteristics. Furthermore, seem prone so-called “discounting gap”, previous studies also suggest. These findings worrisome because, without tailor-made support, these may never escape vicious circle poverty. To end, survey could provide useful policy-makers developing robust policies alleviation.