Measuring energy poverty by estimating the income elasticity of energy demand: An application to Kazakhstan

This study provides an alternative approach to measuring energy poverty by estimating the income elasticity of energy demand and identifying the income threshold for energy poverty. In the semiparametric model, the energy poverty income threshold is identified as the peak point on the income elasticity of the energy demand curve. The threshold regression model defines the income threshold for energy poverty endogenously. Applying these models to 2018–2021 household survey data from Kazakhstan, the study reveals that over 40% of surveyed households were energy poor during the studied period. The findings are robust to different specifications of the empirical model.