Protestantism and energy poverty

Abstract

There is growing interest in the causes of energy poverty. This study examines the relationship between Protestantism and energy poverty. Employing household panel data for Australia, our preferred estimates, which account for endogeneity of Protestantism, suggest that being Protestant is associated with a 1.7 percentage point decrease in the probability that a respondent is in energy poverty based on Low-Income High Cost and a 2.4 percentage point decrease in the probability that a respondent is unable to heat their home. This result is robust to alternative ways to addressing endogeneity, alternative specifications and other checks. We also find that Locus of Control, income, hours worked, and social capital are channels through which Protestantism lowers the likelihood of being in energy poverty. Our findings shed new light on how cultural, and specifically religious, beliefs influence the proclivity to be in energy poverty and may assist policymakers to identify ways to help reduce the incidence of energy poverty.