Energy and climate policy as a determinant of fuel poverty in Poland

Purpose: The aim of the study is to assess the importance of climate and energy policy instruments in fuel poverty reduction policy in Poland. Design/methodology/approach: The paper applies the method of regression analysis to assess the impact of climate and energy policy factors on fuel poverty in Poland. For this purpose, a literature review was carried out on the factors influencing fuel poverty and the development of climate and energy policy, particularly decarbonisation in the European Union, in order to identify potential determinants of fuel poverty. An empirical analysis was carried out of electricity and gas price developments and decomposition analysis of these prices in Poland in the studied period, and it was assessed using regression analysis which factors, among the instruments of energy and climate policies, determine fuel poverty in Poland. Findings: The main finding is that climate and energy policies influence fuel poverty in Poland, especially share of renewable energy sources in energy mix and expenditures on environment protection. It was also found that macroeconomic policy instruments, which determine the level of income per capita and thus disposable income, have a statistically significant impact on fuel poverty in Poland. In addition, it was found that such instruments as taxes and social transfers are worth using for this purpose. Research limitations/implications: It is recommended to deepen long-term research on the impact of these policies on fuel poverty. For the time being, the lack of long-term data limits the possibility for long-term analysis. Practical implications: Unfortunately, there is a lack of detailed data on income decomposition in decile groups, which limits the possibility to accurately estimate the long-term level of fuel poverty in Poland. Social implications: The regulation of fuel poverty would make it possible to constantly monitor the phenomenon and to apply instruments that would precisely limit this social phenomenon. Originality/value: The paper provides information on the impact of climate and energy policy on fuel poverty in Poland. So far there have only been analyses of the scale of the phenomenon, not of the factors. It is addressed to fuel poverty practitioners and policy makers in the field of social and energy policy.