Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data

We examine the determinants, persistence, and dynamics of energy poverty using seven waves of the German Socio-Economic Panel (GSOEP). Employing a dynamic random effects probit model we find evidence of genuine state dependence effects in energy poverty with households being up to 7.5% more likely to face energy poverty if they were energy poor in the previous period. Energy poverty is associated with household composition, educational attainment, labour force status, energy-inefficient housing, and the heating system in place. We document common predictors of perceived and objectively measured energy poverty. Our results suggest that energy poverty in Germany is mostly a transitory state, with 78% of the energy poor households in our sample only temporarily facing energy poverty.