Assessing Household Energy Expenditure Dynamics and Energy Availability in Georgia

This paper explores the dynamics of household energy expenditure in Georgia and emphasizing its socio-economic implications. The study employs Classification of Individual Consumption by Purpose (COICOP) for comparative analysis with other countries, aiming to analyze trends and assess the impact of energy costs on social welfare and sustainable energy management. The study utilizes both primary data collected through electronic questionnaires and secondary data from national and international sources. Quantitative analysis reveals that while Georgian households have experienced increasing average monthly incomes from 2018 to 2022, energy expenditure has also risen, albeit with a decreasing share relative to income over time. This suggests improving affordability despite ongoing challenges. Comparisons with European countries highlight significant disparities in energy expenditure as a proportion of disposable income, with Georgia recording higher percentages, reflecting lower income levels. The study further examines energy poverty using metrics such as the 2M and M/2 indicators, revealing acute challenges among low-income groups. In contrast to European countries, more low-income households in Georgia face inadequate heating, struggle to manage energy costs efficiently, and experience higher levels of energy poverty. Overall, the findings underscore the critical role of energy expenditure analysis in understanding economic disparities and shaping effective policy interventions to enhance energy efficiency and affordability in Georgia.