The geography of energy poverty in Canada: Spatial clustering and inequalities at the municipal level

Abstract

Energy poverty happens when households cannot attain levels of domestic energy services required to meet their needs. Almost 20% of Canadian households face energy poverty. This study examines the geography of energy poverty in Canada, focusing on the clustering of energy poverty at the municipal level. Using data from the 2016 Canadian census, expenditure-based indicators of energy poverty were computed for 3227 municipalities across the 10 provinces. Local indicators of spatial autocorrelation were employed to identify clusters of municipalities characterized by higher levels of energy poverty. Findings reveal significant clustering of energy poverty at the municipal level across Canada, with clusters of higher energy poverty mostly observed in Ontario and the Atlantic Provinces. Municipal clusters of higher energy poverty were characterized by rural-remote location, an older population, lower socioeconomic status, and older and unaffordable housing. Close to 2 million Canadians live in municipalities categorized in a cluster of higher energy poverty. Formal recognition of energy poverty in Canada has the potential to catalyze innovative solutions and investments. Findings from this study can assist with guiding the targeting of solutions and investments, e.g., residential energy retrofits, to areas where energy poverty is most acute.