The rising cost of energy, fuel and other living costs, coupled with decreasing private road subsidies, have increased the economic challenges facing rural areas. This was investigated by VTT and the University of Vaasa in a project on energy and transport poverty in rural areas. The study has resulted in a set of policy recommendations aimed at reducing energy and transport poverty in rural areas.
According to the study conducted jointly by VTT and the University of Vaasa, the daily lives of only about one third of rural households continued as before as energy and transport costs rose. The majority of households had to save for everyday expenses or earn extra income due to increased costs. For some, the problems became long-term, significantly affecting their ability to cope with everyday life.
"Energy poverty is strongly linked to the cost of electricity and other energy and to the condition of residential buildings. In addition to costs and mobility options, transport poverty is related to different mobility needs, distances and access to services. There are areas where there is no public transport, neighbours are far away and taxi services are not always available," says Jenni Vestinen, Principal Scientist at VTT.
Digital services and digital skills are also reflected in energy and transport poverty. For example, comparing electricity prices, finding transport routes and interacting with public authorities' services are mostly done online, which poses challenges for the digitally unskilled. On the other hand, for the digitally skilled, e-services make everyday life easier.
Energy poverty has been studied at EU level for longer than transport poverty. Transport poverty is when a person or household has limited access to essential services and functions. The project by VTT and the University of Vaasa is the first to address the entity of energy and transport poverty from the Finnish rural perspective.
Proactivity and the easing of costs – cooperation needed
The project has drawn up policy recommendations that will help reduce energy and transport poverty in Finnish rural areas. The recommendations state that, in rural areas, transport services that are organized by the public sector should be integrated and opened up to all user groups. This would maintain transport services and control costs. Measures should also be drawn up to reduce the costs of private car use.
The recommendations are intended to improve accessibility and infrastructure. "Private roads are a particularly rural phenomenon. That’s why their maintenance is so important in preventing transport poverty," says Project Specialist Heli Siirilä from the University of Vaasa.
The subsidies introduced during the energy crisis in 2022 and 2023 did not effectively target low-income households, as the deductibles and thresholds were too high. This should be taken into account when developing mechanisms to prepare for energy crises.
Energy poverty can also be prevented by supporting renovation and energy efficiency improvements for vulnerable households. This will avoid situations where households are forced to live in excessively cold conditions, which can be detrimental to their health.
"In everyday life for households and businesses, one problem can lead to another as a result of the snowball effect. In particular, the problems of vulnerable groups and people with disabilities cannot be solved by a single actor or sector. This requires cooperation across administrative borders," says Jenni Vestinen.
The research report will be published by the end of February 2025.
Project: Energy and transport poverty in Finnish rural areas (MaaElli)
Project implementers: VTT and the University of Vaasa
Funding: The Ministry of Agriculture and Forestry has provided funding for the project as proposed by a project group of the Rural Policy Council from funds targeting rural research and development projects by the Development Fund for Agriculture and Forestry (Makera).
Project duration: May 2023–February 2025
Project partners: Evangelical Lutheran Church of Finland / Church Council of Finland and Maaseudun Terveys- ja Lomahuolto ry / Rural Support Person Network
Further information:
Jenni Vestinen, DSc (Tech.), Principal Scientist
VTT Technical Research Centre of Finland Ltd
jenni.vestinen@vtt.fi
+358 40 750 5615
Heli Siirilä, Project Specialist
University of Vaasa
heli.siirila@uwasa.fi
+358 29 4498 557
Read more:
Website of the project: Energy and transport poverty in Finnish rural areas
