Recent years have seen increased interest in the distribution of household energy expenditure burdens across income levels. Using data from the Swiss Household Budget Survey (2006-2017) and the European Household Budget Survey (2010, 2015, 2020), Prof. Dr. Doina Radulescu and Ivan Ackermann quantify energy poverty and assess the regressivity of household energy expenditures, including the impact of recent energy price surges.
In 2017, the energy expenditure shares of equivalent income were 8.6% for the lowest income quintile and 2.6% for the highest in Switzerland, placing it among the lowest burdened compared to most EU economies. Energy poverty, defined as households with energy expenditures exceeding 10% of their income, is lowest in Switzerland and Luxembourg. However, using the criterion of expenditures exceeding twice the national median, Switzerland had one of the highest values at 17%.
We also examined the inequality of the energy expenditure burden. Switzerland shows relatively high values for the convexity of energy expenditure shares and Kakwani index implying a higher degree of regressivity compared to the majority of the EU counterparts.
Equivalent income was the primary factor in energy expenditure inequality, contributing over 50% to the overall concentration index. Age of household head and household size contributed negatively. This suggests that policies beyond incomebased transfers may be necessary to address the adverse effects of an increasing energy expenditure burden. Furthermore, our findings underscore the importance of using multiple measures to accurately assess the allocation of energy expenditure burdens within the population.