Energy poverty and a possible energy efficiency obligation scheme in Türkiye: Comparing income and energy expenditure-based definitions and policy implications

There is a multifaceted relationship between Energy Efficiency Obligation Schemes (EEOS) and energy poverty. EEOS costs are often passed onto end-users through fees, potentially exacerbating energy poverty if benefits are not equitably distributed. However, EEOS can also mitigate these effects by incorporating social objectives. Türkiye plans to implement an EEOS by 2027, yet energy poverty remains largely overlooked in policy discussions. To support fair policy design, policymakers should recognize the complex relationship between EEOS and energy poverty. It is also crucial to understand how different definitions of energy poverty influence the identification of energy-poor households. This study statistically evaluates income and energy expenditure-based energy poverty definitions using the 2022 Household Budget Survey. Chi-square tests and post-hoc analyses are conducted to assess their effectiveness. Additionally, a simulation examines the impact of EEOS-related fees on households. The findings indicate that the identification of energy-poor households is significantly shaped by the selected definition. Although fee implementation does not drastically increase the number of energy-poor households, it intensifies affordability challenges. Furthermore, conventional definitions fail to capture hidden energy poverty and underlying inefficiencies. These findings highlight the importance of a well-targeted and socially sensitive EEOS design that incorporates affordability concerns and structural vulnerabilities.