Methods for estimating “Fuel poverty” in public administration and management systems


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The Ukrainian energy market has been analyzed region-wise in terms of consumption of fuel and energy resources by household sector. Critical aspects of improving energy security have been reflected in the context of the use of energy resources. The principal directions of the socially responsible market economy system have been offered in the light of the country’s economic security in terms of overcoming “fuel poverty”. Cognitive features of the “fuel poverty” phenomenon have been defined. Mathematical modeling of the “fuel poverty” index has been carried out using the following approaches: “after fuel cost poverty”; energy expenditure above 10% of disposable income; the Low Income – High Costs, where households with relatively high energy costs and low income are emphasized. A model of the final calculation of household energy costs has been developed for the purpose of optimal management. The graphical abstract of the obtained “fuel poverty” index solutions has been presented, with the upper left corner – low income – high costs – serving as a critical zone. The block diagram of improving the socially responsible market economy system in the light of overcoming “fuel poverty” has been offered.

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  • JEL Classification (Paper profile tab)
    H12, J17, L94, P18, R11, R23
  • References
  • Tables
  • Figures
    • Figure 1. “Fuel poverty” model
    • Figure 2. The “fuel poverty” modeling outcomes for Ukraine’s regions as a result of high energy costs and low household income
    • Figure 3. The “fuel poverty” modeling outcomes for Ukraine’s regions as a result of measuring the residual household income after subtracting fuel and upkeep costs and comparing it to the poverty threshold, which is mainly 60% of the average national inco
    • Figure 4. System for overcoming “fuel poverty” in the aspect of constructing a socially-oriented market economy in Ukraine
    • Table 1. Results of numerical simulation of the “fuel poverty”