The impact of rising energy prices on energy poverty in Queensland: A microsimulation exercise

Abstract

This study empirically estimates energy poverty levels across Queensland regions. It includes estimates of the number of households experiencing energy poverty in a region and the ability of households across regions to adapt to rising prices (price elasticity). We use these results to conduct a microsimulation exercise to examine how further rises in electricity prices could trigger a rise in energy poverty. It is estimated that 3.42% of all Queensland households—approximately households – approximately 63,128 households—experience households – experience energy poverty, most of them being in the lowest income quintile. Energy poverty appears to be concentrated in certain regions, including Gladstone, Logan and Far North Queensland. A range of contributing factors may account for this pattern: high levels of income insecurity, weather and demographic differences. Beyond the distribution, our results also provide evidence that energy poverty is concentrated in certain groups, including large households. Policy implications are discussed.