Date of Graduation

Spring 5-5-2023

Document Type

Thesis

Degree Name

Master of Science in International and Development Economics (MSIDEC)

College/School

College of Arts and Sciences

Department/Program

Economics

First Advisor

Andrew Hobbs

Abstract

The heating energy expenditure has been frequently taken to the consideration across different studies of poverty reduction. However, there is an unresolved question related to understanding how households’ expenditures might be distinct due to the heating system characteristics. This research implements matching methods to investigate the causal effect of the heating system on households’ gas and electricity expenditure in Ukraine. The result indicates that there is a significant difference in the utility expenditure between the District heating system (DHS) and the Individual heating system (IHS) households. The inherited from the past the Soviet District heating system Model in Ukraine doesn’t allow dwellers to regulate their indoor temperature. Additionally, DHS households pay flat-rate utility bills. Consequently, the DHS households have more than 23% higher utility expenditure compared with the IHS households. The result is relevant for policymakers that have to consider the building characteristics with distinct heating systems while providing financial support for low-income households.

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