92 Luis E. Gonzales Carrasco and Rodrigo Cerda
measurement, the poverty line is basically determined by the cost of a food
basket. The new methodology of multidimensional poverty includes other
factors that relate to vulnerability, such as access to education, health, work and
social security, housing and networks, and social cohesion.
In either approach, access to energy and its costs seem to be absent. There
are several reasons why it is important to include them as a relevant factor. The
first is that climate change will produce (and is already producing) impacts of
various kinds, including increases in average temperatures, droughts, and
extreme weather events (IPCC, 2014). These phenomena are associated with
increases in demand for energy to keep our homes and workplaces at an adequate temperature. In this way, it is expected that energy demand will grow to
cope with climate change. A second reason is that to mitigate climate change it
is necessary to substitute fossil- fuel-intensive technologies for those with lower
emissions of GHGs. To achieve this, policies are being used that may raise
energy prices; for example, if a carbon dioxide tax is imposed it particularly
affects the electricity sector. This second reason suggests an increase in for
households of expenditure on energy, therefore energy expenditure can become
a significant part of the family budget, especially for those most vulnerable. This
would imply that any increases in prices could place pressure on family budgets,
adversely influencing the socio- economic wellbeing of those affected. Thus, in
line with this book’s risk framing, energy poverty is a consequential risk resulting from Chile’s ongoing low- carbon transition.
The variations in climatic regions and resource potential also need to be considered in household energy consumption. In Chile, there are three thermal
zones. The first zone is a ‘hot’ zone in the north which mainly comprises the
Atacama Desert and Valleys, where solar power development is mainly concentrated with temperatures reaching up to 40°C degrees. The second thermal zone
is in central Chile with a ‘temperate climate’ between 8–35°C degrees. The
main metropolitan areas are situated in this thermal zone; they are the wealthiest part of the country and make up around 60% of Chile’s population. The
third zone is in the Patagonia region in the southern Andean Mountains where
there is high potential for hydro power. This area is sparsely inhabited and
income levels are lower.
Overall, electricity prices in Chile high because the electricity mix is
imported, including natural gas. There is potential for hydro power but with
reservations due to climate change, and coal is not popular due to social pressure which inhibits further development.
In this climatic and socio- economic context, this chapter analyses a lowcarbon pathway as manifested around the key idea of incentivising renewable
energy through a carbon tax, as introduced in the electricity- generation sector
in Chile in January 2017. The particular focus is on the potential energy poverty
risk in the absence of a compensation policy, with the aim of deconstructing
this potential negative consequence by measuring energy poverty – also known
in the literature as ‘fuel poverty’ – and the degree of energy vulnerability of
Chilean households; more concretely, this is done by determining how many
measurement, the poverty line is basically determined by the cost of a food
basket. The new methodology of multidimensional poverty includes other
factors that relate to vulnerability, such as access to education, health, work and
social security, housing and networks, and social cohesion.
In either approach, access to energy and its costs seem to be absent. There
are several reasons why it is important to include them as a relevant factor. The
first is that climate change will produce (and is already producing) impacts of
various kinds, including increases in average temperatures, droughts, and
extreme weather events (IPCC, 2014). These phenomena are associated with
increases in demand for energy to keep our homes and workplaces at an adequate temperature. In this way, it is expected that energy demand will grow to
cope with climate change. A second reason is that to mitigate climate change it
is necessary to substitute fossil- fuel-intensive technologies for those with lower
emissions of GHGs. To achieve this, policies are being used that may raise
energy prices; for example, if a carbon dioxide tax is imposed it particularly
affects the electricity sector. This second reason suggests an increase in for
households of expenditure on energy, therefore energy expenditure can become
a significant part of the family budget, especially for those most vulnerable. This
would imply that any increases in prices could place pressure on family budgets,
adversely influencing the socio- economic wellbeing of those affected. Thus, in
line with this book’s risk framing, energy poverty is a consequential risk resulting from Chile’s ongoing low- carbon transition.
The variations in climatic regions and resource potential also need to be considered in household energy consumption. In Chile, there are three thermal
zones. The first zone is a ‘hot’ zone in the north which mainly comprises the
Atacama Desert and Valleys, where solar power development is mainly concentrated with temperatures reaching up to 40°C degrees. The second thermal zone
is in central Chile with a ‘temperate climate’ between 8–35°C degrees. The
main metropolitan areas are situated in this thermal zone; they are the wealthiest part of the country and make up around 60% of Chile’s population. The
third zone is in the Patagonia region in the southern Andean Mountains where
there is high potential for hydro power. This area is sparsely inhabited and
income levels are lower.
Overall, electricity prices in Chile high because the electricity mix is
imported, including natural gas. There is potential for hydro power but with
reservations due to climate change, and coal is not popular due to social pressure which inhibits further development.
In this climatic and socio- economic context, this chapter analyses a lowcarbon pathway as manifested around the key idea of incentivising renewable
energy through a carbon tax, as introduced in the electricity- generation sector
in Chile in January 2017. The particular focus is on the potential energy poverty
risk in the absence of a compensation policy, with the aim of deconstructing
this potential negative consequence by measuring energy poverty – also known
in the literature as ‘fuel poverty’ – and the degree of energy vulnerability of
Chilean households; more concretely, this is done by determining how many