An income rule determines household eligibility for the energy allowance at a maximum of 120% of the minimum wage. This thesis examines the effect of the energy allowance on the mental and physical...Show moreAn income rule determines household eligibility for the energy allowance at a maximum of 120% of the minimum wage. This thesis examines the effect of the energy allowance on the mental and physical health of eligible Dutch cohabiting households below and above the AOW pension age. It does so by utilizing a sharp regression discontinuity design to compare the mental and physical health statuses of eligible and non-eligible households. This thesis does find evidence for significant changes on the mental and physical health of Dutch cohabiting households below the AOW pension age. However, the findings reveal a negative association between the energy allowance on depression levels of Dutch cohabiting households above the AOW pension age. This thesis advises the Dutch government to reconsider the income threshold used for the energy allowance and encourages future research to investigate the health effects of the energy allowance more profoundly.Show less
