Prof. Greg Marsden's introductory presentation to the 2-day international workshop "Energy-related economic stress at the interface between transport poverty, fuel poverty and residential location", held at the University of Leeds, 20th – 21st May 2015.
1. ENERGY-RELATED ECONOMIC STRESS AT
THE INTERFACE BETWEEN TRANSPORT
POVERTY, FUEL POVERTY AND
RESIDENTIAL LOCATION
Welcome and Introduction
Professor Greg Marsden
Institute for Transport Studies, University of Leeds
5. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
% of total household expenditure
by equivalised disposable income group
Domestic energy
Transport (total)
Operation of personal
transport
Transport (total -
purchase of vehicle)
6.
7. 0
50
100
150
200
250
300
Harmonised index of consumer prices, EU-28, 1996-2014 (1996=100)
All-items HICP
Housing, water, electricity, gas
and other fuels
Electricity, gas and other fuels
Transport
Operation of personal transport
equipment
8. 0%
10%
20%
30%
40%
50%
60%
1988 1994 1999 2005 2010
Combined share of housing + transport expenditure in the UK
1988-2010, by income quintile
First quintile
Second quintile
Third quintile
Fourth quintile
Fifth quintile
9. • Units of analysis – poverty and economic stress because of
what we do. Energy is a part of that but only a part of it
• Policy silos are central to this. For too long we have looked
at this in a narrow way
• Austerity, inequality and injustice look like they are
widening, not narrowing
• We are at a point of a major transition in mobility and
possibly a coupling of domestic energy travel – but we
haven’t thought it through
Importance of this workshop
10. • What is energy used for?
• Opens up questions of need and entitlement
• At the interface between buildings and mobility
• Justice and equity
• Fuel Poverty (Gordon Walker, Neil Simcock, Rosie Day)
• Beyond Elasticities (Caroline Mullen, Greg Marsden)
• Economic stress (Giulio Mattioli, Karen Lucas, Jillian Anable)
The DEMAND Centre
12. Housing costs
Domestic energy
costs
Transport costs
Residential location
Common
energy natureTransport and social
exclusion, carless
households, etc.
Fuel poverty
Transport poverty
13. Cross-learning between different:
• EU countries (UK, DE, FR)
• sectors (transport, housing, domestic energy)
• between research and policy-making communities
Focus on two axis:
1. Transport & housing costs
2. Transport & domestic energy costs
Workshop goals
14. • Mattioli - Households without cars, motoring costs and affordability
FRANCE
• Nicolas - Transport costs, oil vulnerability and urban form
• Jouffe - Energy poverty research and policy-making
• Motte-Baumvol – Escaping car dependence in periurban areas
GERMANY
• Gertz - Rising transport costs and spatial planning
• Scheiner - Transport costs, residential choice & mobility biographies
UK
• Lovelace & Phillips – Oil vulnerability in Yorkshire & Humberside
• Roundable discussion - what lessons from an international comparison?
(Anable, Martens, Walker, Lucas)
Day 1
Perfect storm:
Economic austerity and widening of income gap
Continued change in household structures, migration and rising housing costs
Volatility in oil prices
Rising domestic energy prices
Critically, the average price increase from 2005 to 2013 was 79% or 10% per annum
This varies from 27% in the Netherlands to 131% in Spain
Of obvious concern and relevance here is the much higher proportion of disposable income that housing costs form for lower income groups.
Transport costs are not regressive – quite the opposite. But this is in part because households in lower deciles are less likely to own a car.
And there are obvious geographical differences both between urban areas in quite distinct housing markets but also, as shown on this chart between urban and rural areas – transport for example is much higher in urban areas, in part due to the lower levels of accessibility.
Housing and transport prices have increased faster than overall inflation in the last 20 years (housing more than transport). Within both,fuel expenditure has increased even faster
The gap has increased between the two lowest income quintiles (now spending more than 25 years ago on H+T) and the rest. Households in lowest income quintile now devote on average half their expenditure to H+T. More detailed analysis shows that this is due mostly to housing. The share spent on transport (and notably operation of private vehicle) has increased for all quintiles.
Such an increasing gap is not observed in France and Germany.
UK: strong policy and research attention for poverty, both in general and specifically in the domestic energy, transport and housing sectors. However: intriguing lack of interest for the relationships between issues of affordability in the different sectors.
This is different in FR and DE.
Hence the idea of a workshop that is cross-sectoral (3 x sectors) and international (3 x EU countries).
The roundtable discussion will focus on how / whether the findings of the French and German studies presented throughout the day are relevant for UK research and policy – trying to “bring the discussion back to Britain”. This eases the transition to day 2 where the focus will be much more on UK policy making.
We want to ask participants to write down anonymous questions (focused on UK) throughout the day which we will then gather and ask to the roundtable participants.
We will tweet during the workshop. Participants are welcome to do so too with the hashtag