Energy poverty: an analysis for households in rural and urban Brazil

Abstract

This study proposes the construction of a Multidimensional Energy Poverty Index (MEPI) for Brazil, inspired by the Alkire-Foster method, based on microdata from the 2023 Continuous National Household Sample Survey (PNADC). The index integrates dimensions such as type of fuel used, access to electricity, ownership of essential appliances, and continuous availability of energy supply. In addition to measuring the incidence of energy poverty, a multinomial logit model was estimated to identify factors associated with the probability of a household being classified as having different levels of energy deprivation (non-poor, vulnerable, poor, and severely poor). The results indicate that 27% of households are vulnerable, while 0.83% experience consolidated energy poverty, with a strong concentration in rural areas. The chances of a rural household experiencing energy poverty are approximately 15 times greater than those of an urban household. Income, education, race, and family structure were found to be relevant, indicating that energy poverty is a multidimensional phenomenon that reflects socioeconomic and territorial inequalities. The evidence reinforces the need for coordinated actions between the public and private sectors, and civil society, recognizing that tackling energy poverty requires intersectoral approaches that are sensitive to local specificities.