Temperature shocks and energy poverty: findings from Vietnam

Globally, billions of people live in energy poverty without the means to access affordable and clean energy which are fundamental to sustainable development. Climate change is aggravating increasing demand for energy through a general rise in temperatures as well as through short periods of unusually high heat. This paper examines the impact of temperature shocks on energy poverty in Vietnam. Using data from the Vietnam Household Living Standards Survey (2010 to 2016) and data from the European Centre for Medium-Range Weather Forecasts it finds temperature shocks lead to increases in a measure of multidimensional energy poverty. This finding is robust to different measures of temperature shocks. Households in the North and Central coast regions of Vietnam are most prone to the impacts of temperature shocks as well as households located in rural areas. Further findings suggest that temperature shocks impact on energy poverty through reducing agricultural output.