The Impact of Energy Efficiency Regulations on Energy Poverty in Residential Dwellings in the Lisbon Metropolitan Area: An Empirical Investigation

Abstract

This research examines the effect of energy efficiency regulations on reducing energy poverty in residential dwellings in 18 municipalities of the Lisbon metropolitan area from 2014 to 2020. In its empirical investigation, this study uses Ordinary Least Squares (OLS) with fixed effects and Moments Quantile Regression (MM-QR) methodologies. The results of the OLS and MM-QR models suggest that energy efficiency regulations for the residential sector positively impact energy poverty (101.9252). However, this result may suggest that the current regulations are not effectively mitigating energy poverty in Lisbon’s metropolitan area and Portugal. This ineffectiveness could be due to economic, institutional, and behavioural barriers that impede the achievement of regulation policy goals. In maximising economic and social benefits, policymakers should consider implementing policies that link energy efficiency with clean energy generation in dwellings, promote economies of scale by recycling residuals from dwelling renovations, and provide clear guidance for materialising the energy strategy.