Rethinking energy poverty alleviation through energy efficiency: Evidence from Ukraine

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Providing people with access to sustainable energy and overcoming energy poverty are essential tasks of the energy transition to a climate-neutral economy. The paper aims to examine the financial measures to alleviate energy poverty in Ukraine, such as the provision of energy subsidies and the financing of local programs to improve the energy efficiency of buildings through the Energy Efficiency Fund. Using statistical data of the International Energy Agency, Eurostat, the Ministry of Energy of Ukraine, and the State Statistics Service of Ukraine, the paper analyzes the state of energy poverty in Ukraine compared to EU countries. In the context of Ukraine’s intensifying energy and economic crises, the assessment of the fiscal cost of energy subsidies reflects a significant increase in an additional burden on the state budget. The fiscal cost of subsidies was assessed using the price-gap approach. The paper presents the results of energy modernization of buildings in Ukraine through the Energy Efficiency Fund. Implementation of energy modernization projects for buildings reduces energy costs and СО2 emissions, increases housing energy efficiency, and expands the possibilities of overcoming energy poverty. The application of the cost-benefit analysis method to sustainable housing renovation projects is demonstrated to more accurately assess energy and carbon impacts and to obtain financial support. The formulated proposals aim to raise awareness of power structures and support informed decision-making to overcome energy poverty and build a sustainable energy future for Ukraine.

Acknowledgment
This article presents the results of a study conducted as part of the scientific project “Formation of the foundations of nationally rooted stability and security of the economic development of Ukraine in the conditions of the hybrid “peace-war” system” (state registration number 0123U100965).

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    • Figure 1. A legal framework for combating energy poverty based on sustainable financing in the EU countries
    • Figure 2. Electricity generation in 2013–2023
    • Figure 3. Electricity generation in the world and Ukraine in 1990–2023
    • Figure 4. Cost of government support for fossil fuel production and consumption measures according to OECD and IEA approaches, USD billion
    • Figure 5. Global value of fossil fuel subsidies in 2022, real 2022 USD billion
    • Figure 6. Scheme of grant support for energy modernization projects in residential buildings
    • Table 1. Global carbon dioxide (CO2) emissions by sector, %
    • Table 2. Energy poverty assessment in EU countries in 2023 and Ukraine
    • Table 3. Fossil-fuel subsidies in selected countries in 2022
    • Table 4. Fossil-fuel subsidies in Ukraine in 2010–2022
    • Table 5. Main results of the implementation of energy saving and energy efficiency projects with the support of the Energy Efficiency Fund in Ukraine
    • Table 6. Ecological and economic efficiency of energy modernization projects for buildings
    • Conceptualization
      Svitlana Naumenkova, Ievgen Tishchenko, Volodymyr Mishchenko
    • Formal Analysis
      Svitlana Naumenkova, Ievgen Tishchenko, Svitlana Mishchenko
    • Investigation
      Svitlana Naumenkova, Ievgen Tishchenko, Volodymyr Mishchenko, Svitlana Mishchenko
    • Methodology
      Svitlana Naumenkova, Ievgen Tishchenko, Volodymyr Mishchenko, Svitlana Mishchenko
    • Project administration
      Svitlana Naumenkova
    • Supervision
      Svitlana Naumenkova, Volodymyr Mishchenko
    • Writing – original draft
      Svitlana Naumenkova, Ievgen Tishchenko, Svitlana Mishchenko
    • Writing – review & editing
      Svitlana Naumenkova, Ievgen Tishchenko, Volodymyr Mishchenko
    • Visualization
      Ievgen Tishchenko, Svitlana Mishchenko