Microeconometric analysis of energy poverty and urban-rural welfare disparities in Tunisia: Implications for sustainable development policy

Abstract

Energy poverty and urban-rural welfare disparities are critical challenges in Tunisia's pursuit of sustainable development. Using microeconometric decomposition analysis, the study highlights the distinct issues faced by urban and rural areas in terms of energy access and welfare. The findings reveal that urban regions suffer from inefficient energy systems, such as outdated natural gas infrastructure and reliance on harmful fuels like charcoal and wood, which hinder economic resilience and equity. In contrast, rural areas face inadequate heating and limited access to reliable, affordable energy, worsening living conditions and welfare gaps. Addressing these disparities requires targeted policies: urban areas need investments to modernize energy infrastructure and reduce reliance on harmful fuels, while rural areas require improved heating solutions and reliable energy access. Implementing region-specific strategies, alongside strong stakeholder engagement and ongoing monitoring, will be crucial for bridging these gaps and advancing Tunisia's equitable and sustainable development.