Inequality Trends around the Mediterranean

Fuel Poverty Exposure and Drivers: A comparison of Vulnerability Landscape between Egypt and Jordan


Economic Research Forum


November, 2019


C1. Econometric and Statistical Methods and Methodology

D1. Household Behavior and Family Economics

Q4. Energy

I3. Welfare, Well-Being, and Poverty

This article, using ERF-LIS harmonised micro data, develops an empirical model to investigate the extent and fuel poverty explanatory factors in Egypt and Jordan. First, we use “Low income – High Consumption” indicator to measure the fuel poverty extent. Second, we implement multivariate statistical approach to untangle the fuel poor household profile. Then, to explore the factors driving the risk of falling into fuel poverty situations we use a logistic regression model. This research is an important empirical contribution to the sparse literature of fuel vulnerability in MENA countries. It puts forward an empirical approach, which is helpful in discerning and targeting families most in need of energy and financial related assistance. From policy perspectives, the findings provides promising ways of accounting for the fuel poverty phenomenon as a vector of inequality trends in the MENA region. The main findings of the research point to the crucial instrumental role of economic conditions, reducing inequalities and access to education facilities in attenuating fuel poverty in Egypt and Jordan.