Does host language proficiency among immigrants reduce energy poverty? Evidence from Australia.

Abstract

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Reducing energy poverty is a critical priority for policymakers in both developed and developing nations. Immigrants are often considered a high-risk group due to their heightened vulnerability. While host language proficiency has the potential to mitigate energy poverty among immigrants by enhancing economic integration and facilitating access to essential information and services, its role remains largely unexplored. Using Australian data and addressing endogeneity concerns through a two-stage least-squares (2SLS) approach, this paper provides the first empirical evidence on the causal relationship between host language proficiency and energy poverty among immigrants. The results show that proficiency in the host language reduces the likelihood of experiencing multidimensional energy poverty by approximately 18.8 percentage points. This effect is partly driven by better access to social assistance, higher income and, to a lesser extent, stronger social capital among proficient immigrants. The findings underscore the importance of language skills in shaping energy poverty and highlight the need for language education to reduce economic disparities among immigrant populations.