Study 140 million people could end up in extreme poverty

Study: 140 million people could end up in extreme poverty

The global energy crisis triggered by the conflict between Russia and Ukraine has impacted energy prices “Heating, cooling and mobility of apartments”and the cost of other goods and services worldwide, which could push about 141 million people around the world into extreme poverty, according to a study published Thursday in Nature Energy.

The researchers modeled the direct and indirect effects of rising energy prices on 201 spending groups in 116 countries. The nine different scenarios proposed by the authors show that people would have to do it spend between 62.6% and 112.9% more on energywhich increases the total household expenses by 2.7% to 4.8%.

Analysts emphasize that the burden of energy prices differs for different groups of households and in different countries due to differences in supply chain structure, consumption patterns and energy needs. According to calculations, between 78 and 141 million people worldwide could be condemned to extreme poverty.

Regarding the increase in energy costs, both direct and indirect, households in Central Asia they are still the Most Affected (80.7%) – the largest increase was in Tajikistan – followed by South and Southeast Asia (74.5%). For example, the Laotians’ direct energy costs increased by 51.1%, while their total energy costs increased by 100.8%.

Looking only at the direct impact, many countries are in Africa southern of the Sahara and Central Asia are facing further growth in this area. The top three countries on the list are Angola (6.4%), Azerbaijan (3.5%) and Benin (3.5%).