European and US approaches to energy poverty: Classifying and evaluating design strategies

Abstract

As climate change accelerates and recent health, energy, and inflation crises exacerbate broader inequality trends, ensuring adequate and affordable access to energy services is becoming increasingly important. In this paper, we conduct an in-depth review of energy poverty policy and program design in Europe and the United States. We classify and evaluate different approaches according to four categories of policy choices: assistance, targeting, funding, and governance. We discuss the advantages and disadvantages of the approaches adopted in both contexts, extract key lessons, and provide recommendations to improve the effectiveness of energy assistance policies. The taxonomy presented here is not intended as a tool for evaluating program effectiveness. Instead, it is meant to help us understand how specific design decisions may impact program outcomes.

As climate change accelerates and recent health, energy, and inflation crises exacerbate broader inequality trends, ensuring adequate and affordable access to energy services is becoming increasingly important. In this paper, we conduct an in-depth review of energy poverty policy and program design in Europe and the United States. We classify and evaluate different approaches according to four categories of policy choices: assistance, targeting, funding, and governance. We discuss the advantages and disadvantages of the approaches adopted in both contexts, extract key lessons, and provide recommendations to improve the effectiveness of energy assistance policies. The taxonomy presented here is not intended as a tool for evaluating program effectiveness. Instead, it is meant to help us understand how specific design decisions may impact program outcomes.