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Journal of Energy Markets

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Health composite indexes and the indoor energy poverty nexus: evidence from France

Waed Safar

  • We investigate the impact of energy poverty on health in France using PSM.
  • Two composite health indices are constructed using MCA.
  • Energy poverty significantly deteriorates health outcomes.

The effect of energy poverty on health has been widely studied, but these studies often use different indicators of energy poverty and rely on simplistic health indicators. However, analyses of this relationship using multidimensional and precisely measured health indicators, in particular in the French context, are limited. This paper addresses the limitations of existing studies by using a recent survey specifically designed to analyze the relationship between energy, housing and health in French households in 2019. To estimate the health effects of energy poverty, we employ several alternative indicators of energy vulnerability. To assess health, in addition to an objective measure of chronic physical illness, we construct two composite indexes that capture mental and respiratory health conditions, respectively. The results of our propensity score matching method reveal distinct effects across the different dimensions of energy vulnerability. While thermal discomfort mainly affects respiratory and mental health outcomes, financial strain and housing faults are associated with a broader range of adverse health consequences. The findings of this study highlight the urgent need to alleviate energy poverty to improve individual health. From a policy perspective, combining financial support measures with housing quality and energy efficiency improvements may simultaneously reduce energy vulnerability, improve health outcomes and lower future health care costs. The results also highlight the importance of targeted housing and public health interventions, particularly for preventing respiratory illnesses in vulnerable households.

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