Fuel poverty in Summer: An empirical analysis using microdata for Japan

The term fuel poverty is used to describe households that cannot afford the fuel costs of heating during winters. Fuel poverty is estimated on the basis of European criteria given that winters tend to be severe in Europe. However, it would be inappropriate to apply the same criteria to Asian regions with severe heat levels. Considering fuel poverty in the context of cooling expenses incurred during summers is also necessary. Thus, this study aims to examine potential fuel poverty households in Japan during summer and their occurrence condition using microdata. The estimation results reveal that only 0.93% of the surveyed households report fuel poverty. However, 5.53% poverty households can be classified as fuel poverty households. The results further show that households with elderly couples, particularly those living in old and/or large-floored homes with old room air conditioners, and single parent households are more vulnerable to fuel poverty. This study also conducts a binomial logistic regression analysis to clarify the occurrence condition for fuel poverty households. The findings suggest that elderly households easily fall into fuel poverty because of their low annual income and increased electricity expenditures owing to a rise in the energy amount rate.