Determinants of energy poverty in South Africa

Abstract

This paper provides empirical evidence on the determinants of energy poverty in South African households using the National Income Dynamics Survey (NIDS, 2012), while controlling for individual, household and demographic characteristics. This is formulated within a logistic regression framework, while defining energy poverty using the expenditure approach consistent with the definition by the Department of Energy (DoE) of South Africa. The model reveals that household expenditure patterns, race, education level, household and dwelling size, location of the household and access to electricity are important factors in explaining the state of energy in South African households. This paper also discusses limitations in defining energy poverty using the expenditure approach. Finally, some recommendations are made for regulators and policy makers.