An analysis of energy consumption to identify urban energy poverty in Seoul

Abstract

© 2016 The Institute of Urban Sciences.ABSTRACT: The Korean Government defines ‘energy poverty’ as households that spend more than 10% of their total income on lighting and heating. This study estimated the percentage of urban energy poverty in Seoul for the winter season, based on the amount spent on energy of various types by households with different levels of income, the amount of energy they used per month and the price charged per unit of electricity and city-gas usage. Energy usage–income graphs were used to determine a Gini coefficient of 0.08 for Seoul, which signifies a relatively fair energy distribution in the city's low-income population in comparison to that of other countries, which ranged from 0.19 for Norway to 0.87 for Kenya. Our results reveal that the energy poverty problem in Seoul is primarily due to a rapid increase in the unit cost of gas for heating. Although the energy distribution of households in Seoul is fairer than that in many other countries, the problem of energy poverty remains. This is primarily because the main energy sources for city residents are electricity and gas, and the cost of the gas utilized for heating in the winter months has increased at a much faster rate than the income of the city's poorest residents in recent years. According to the result of this study, cities where energy consumption rapidly increases because of higher demand during the winter season should be required to support polices that assist energy consumption for heating in the winter for people suffering from energy poverty.