When does the energy transition impact household affordability? A mixed-methods comparison of fourteen coal and carbon-intensive regions
Amanda Martínez-Reyes, Jenny Lieu, Nihit Goyal, Diana Mangalagiu, Thomas Hoppe
Abstract
• Energy affordability tends to be lower in phasing-out than in transitioning regions. • Regional conditions are strongly associated with energy affordability. • Global policies misaligned with regional transitions can undermine affordability. • Regional fossil-fuel dependency is associated with low energy affordability. • Aligning energy transition and regional development plans can favor affordability. Understanding what conditions promote or hinder energy affordability in energy transitions is crucial for coal and carbon-intensive regions (CCIRs) dealing with the trade-off between phasing out fossil fuels and deepening social inequalities. While previous studies have included household and national-level conditions, this paper addresses the research gap covering regional-level conditions by drawing from regional energy governance, energy justice, and sociotechnical transition frameworks. A mixed-method approach consisting of a fuzzy-set qualitative comparative analysis and case-study analysis is applied to 14 CCIRs in Europe, Asia, and North America. Results show that energy affordability in CCIRs is influenced by combinations of regional and (inter)national conditions. Whereas the existing literature and transition policies do not differentiate between the CCI sector’s transition type, this paper highlights that conditions underlying energy (un)affordability differ when the CCI sector is phased out or has the option to transition. Based on the findings, this study calls for a multi-level governance approach to alleviating and preventing energy unaffordability and recommends that policy mixes like the EU Just Transition Fund consider the different types of CCIR transitions.