Energy poverty and health: does the social energy tariff help?

Abstract

This study examines the impact on health outcomes of the social energy tariff, a policy tool in Spain designed to alleviate energy poverty. Energy poverty—being unable to afford adequate heating, cooling, or other energy needs— is linked to poor physical and mental health. Using a recursive bivariate probit model, we analyze data from the 2022 Spanish Living Conditions Survey, focusing on the health implications of energy poverty, measured through inadequate home temperature and delayed bill payments. The results show that, while the social energy tariff moderately reduces energy poverty —with only a 1 %–2 % decrease, its impact on improving health outcomes remains limited. The average treatment effect on the treated suggests that individuals experiencing energy poverty are significantly more likely to report poor physical and mental health, with a 7 %–23 % decrease in the likelihood of reporting good health. Our findings indicate that, although the social energy tariff provides some financial relief, structural solutions such as energy efficiency improvements and increased access to renewable energy are needed to address the broader health impacts of energy poverty. The study offers policy recommendations to enhance both energy access and public health, emphasizing the importance of integrating health considerations into energy poverty interventions.