Energy poverty and ethnic disparities among Jewish and Muslim households in Israel: The implications for welfare systems

Income, education, employment, and housing conditions are key determinants of energy poverty. Recent studies have also highlighted the role of ethnicity and race. The current study analyzed data from a survey of 1274 social-aid recipients in Israel, with the objectives of firstly, delineating disparities in personal and household characteristics, along with energy poverty experiences, between the two principal ethnic groups in Israel – Jews and Arab-Muslims; and secondly, investigating the relationship between belonging to an ethnic minority and the relative severity of energy poverty experiences, while accounting for the aforementioned determinants. The findings reveal striking ethnic disparities related to energy poverty, even when controlling for income and education. Compared with Jewish households, Arab-Muslim households were twice as likely to experience severe energy poverty, which manifested in higher rates of self-reported electricity disconnections and the need to forgo cooling, heating, and other essentials due to the inability to pay electricity bills. In addition to ethnicity, poor housing conditions, unpaid financial commitments, and aid dependency were significantly associated with energy poverty. The discussion highlights the historical, social and structural contexts, which may account for such disparities. Within Israeli society, Arab-Muslim households confront multifaceted challenges stemming from enduring discrimination as well as cultural barriers. Persistent inequalities in planning and housing leads to unsafe electricity connections and distrust in the state's institutions; ill-adapted banking and finance systems hinder payment flexibility and debt resolution; and language and cultural obstacles limit access to social rights and increase aid dependency. We conclude that tackling energy poverty demands an integrated understanding of these issues and the design of policies that bridge the gap between energy and welfare services.