Skip to main content
Article thumbnail
Location of Repository

Why Fuel Poverty?

By Keshab Bhattarai


The National Health Service (NHS) in UK prescribes 210C in the living room and 180C in other rooms for all households but for more than 7.7 percent households cost of heating is above 10 percent of their income and they suffered from coldness related diseases and are in fuel poverty. Raising growth rates of income of vulnerable households, stabilising prices of fuel products and improving fuel efficiency of houses are measure to eliminate fuel poverty and to reduce the excess deaths caused by this. This paper shows how the basic needs of fuel demand can be modelled using the Stone-Geary preferences and how the growth of the economy is related to those preferences and technology of firms over time is analysed with Bellman-Sargent dynamic programming models. Demand and supply analysis of this kind should complement DTI’s methodology on fuel poverty for policy analysis.Fuel poverty, Stone Geary Preference, dynamic programming

OAI identifier:

Suggested articles


  1. (1949). A note on a constant utility index of the cost of living”,
  2. (1987). Dynamic Macroeconomic Theory”, Chapter 1,
  3. (1957). Dynamic Programming,
  4. (2006). Health Observatory (YGPHO
  5. (2007). Input-Output and General Equilibrium Models for Hull and Humber Region in England”,
  6. (1954). Linear Expenditure System and Demand Analysis: An Application to the
  7. (1980). Microeconomic Theory: A Mathematical Approach”,
  8. (1989). Modelling household energy expenditure using micro data”,
  9. (1979). Poverty in the United Kingdom: A survey of Household Resources and Standard of Living”,
  10. (2007). Why Fuel Poverty?” Conference paper presented at the EEA/ESEM Conference in Budapest, Hungary in

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.