Energy bill support versus home thermal retrofits
Assessing the dynamic economic impacts of fuel poverty mitigation initiatives in the United Kingdom
Bibliographic Data
| ID | 13065547 |
|---|---|
| Authors | Long Zhou (0000-0003-3379-9771, University of Strathclyde, corresponding author), Antonios Katris (0000-0001-9352-2307, University of Strathclyde), Karen Turner (0000-0001-5278-6779, University of Strathclyde) |
| Year | 2026 |
| Volume | 135 |
| Pages | 104588-104588 |
| Publication date | 2026-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Energy Research & Social Science (JOURNAL) |
| Journal identifiers | ISSN: 2214-6296 • E-ISSN: 2214-6326 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.erss.2026.104588 |
| OpenAlex | W7139941777 |
| Language | EN |
| References cited | 22 |
Fuel poverty is a growing concern in the United Kingdom. However, there is limited evidence on how different forms of public spending on fuel poverty mitigation affect fuel-poor households and the wider economy. This study uses a dynamic computable general equilibrium modelling approach to broadly compare two central fuel poverty approaches in the UK: providing time-limited direct energy bill support and funding basic home retrofits of loft and cavity wall insulation. The findings show that direct bill support provides immediate relief for all fuel-poor households and produces a short-lived economic stimulus driven by consumer spending. In contrast, public investment in delivering basic home retrofits initially triggers a construction-led stimulus that is replaced over time by a sustained boost supported by fuel-poor households saving on their energy bills. However, a given budget reaches fewer households, while the transitory increase in demand for constrained construction capacity leads to the displacement of other economic activities, particularly when producers demonstrate perfect foresight of the time-limited nature of public spending on retrofit programmes. The findings also show that the method used to raise public funds matters: taxing higher-income households reduces overall consumption and weakens economy-wide benefits, while taxing energy suppliers exacerbates regressive energy price pressures. Overall, the study highlights concrete trade-offs between immediate income support and longer-term efficiency gains, and shows how capacity constraints, expectations, and financing choices jointly shape the economic and distributional outcomes of fuel poverty mitigation policy
Economic impact analysis · Energy (signal processing · Energy policy · Energy poverty · Fuel poverty · Poverty · Energy and Environment Impacts · Integrated Energy Systems Optimization · Social Acceptance of Renewable Energy
Measuring Fuel Poverty
Definitions of fuel poverty
A Theory of Demand for Products Distinguished by Place of Production (Une theorie de la demande de produits differencies d'apres leur origine) (Una teoria de la demanda de productos distinguiendolos segun el lugar de produccion)
Tobin's Marginal q and Average q
Lump-sum vs. energy-efficiency subsidy recycling of carbon tax revenue in the residential sector
| Citation velocity | historical |
|---|---|
| Highly cited | No |