Targeted cash transfers vs universal price subsidies: policy persistence and cost-effectiveness in EU energy poverty (2015–2024)
International Journal of Sociology and Social Policy, pp.1-22, 2026 (ESCI, Scopus)
- Publication Type: Article / Article
- Publication Date: 2026
- Doi Number: 10.1108/ijssp-01-2026-0043
- Journal Name: International Journal of Sociology and Social Policy
- Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, IBZ Online, Periodicals Index Online, ABI/INFORM, Criminal Justice Abstracts, Political Science Complete, Public Affairs Index, Criminal Justice Periodical Index, Political Science Abstract (IPSA), Social Science Premium Collection (ProQuest), Criminology Collection (ProQuest), Political Science Database (ProQuest), Sociology Database (ProQuest), Sociology Source Ultimate (EBSCO)
- Page Numbers: pp.1-22
- Keywords: Cost-effectiveness, Energy affordability, Energy poverty, Price subsidies, Targeted transfers
- Azerbaijan State University of Economics (UNEC) Affiliated: Yes
Abstract
Purpose – This study compares the effectiveness of targeted cash transfers and universal price subsidies in reducing energy poverty across the EU-27 (2015–2024). It evaluates impacts on household energy affordability, persistence of outcomes, and cost-effectiveness under high energy burden and market volatility. Design/methodology/approach – We construct a country-year panel and estimate multi-period difference-in-differences models with staggered adoption. Outcomes use a sign-reversed, country-standardized EU-SILC indicator (“unable to keep home adequately warm”), where higher values denote improvement. Event-time dynamics, mediation (price pass-through), and heterogeneity across burden levels are examined. Findings – Average treatment effects are imprecise; however, event-time profiles indicate more persistent improvements following targeted transfers. Mediation results show limited retail price pass-through, consistent with preserved price signals. Heterogeneity analyses reveal stronger gains in high-burden contexts under targeting, while universal subsidies display less stable and less durable effects. Persistence-adjusted cost-effectiveness favors targeted transfers. Originality/value – This paper provides the first EU-wide, decade-long comparison of targeted versus universal energy poverty policies, integrating persistence-adjusted cost-effectiveness with mediation and distributional analyses, and supports a “cash-first” policy orientation.