This issue note focusses on distributional consequences of energy sector reform at the household level with a strong focus on energy taxation. Taxation of energy is a prominent instrument in environmental economics that can be highly cost-efficient. There are, however, a number of other instruments such as direct regulation, subsidies, energy efficiency policies than are not covered in this note. This issue note examines energy poverty in developed and developing countries, defined broadly as non-affordability of energy services.




distributional consequences of energy sector reform; energy poverty; environmental taxation