Mind over matter: The impact of mental health on energy poverty

Energy poverty is a growing global concern. This paper aims to investigate the role of poor mental health as a risk factor for energy poverty using longitudinal data from Australia. The study examines the direct effects of mental health on energy poverty and explores potential mechanisms involving saving behavior, gambling, and social trust. The findings, which account for the endogeneity of mental health, suggest that poor mental health increases the likelihood of being in energy poverty. Furthermore, saving behavior is a mechanism through which mental health influences energy poverty. The study's findings imply that implementing policies to support mental health could serve as a promising strategy for addressing energy poverty.