Hot or cold temperature disproportionately impacts U.S. energy burdens

Abstract

The lack of affordable, reliable, and resilient energy services remains a challenge for many U.S. households. Few studies have investigated how temperature makes already vulnerable Black, low-income, and less-educated households more likely to experience energy poverty. We construct a unique 8-year historical panel dataset to unpack the relationship between temperatures and energy burdens, paying specific attention to additional burdens among the most vulnerable groups. We find that hot and cold temperatures have further exacerbated the disproportionate impact on energy burdens across multiple vulnerable groups. Extremely low-income groups are ~6 times more adversely affected by temperatures than high-income groups. Temperatures also put other already marginalized groups, such as those less-educated/unemployed/living in energy-inefficient old houses, at higher risk of falling into an energy poverty trap. Considering temperatures are the dominant feature differentiating households in their ability to meet basic electricity needs, we recommend more equitable and inclusive electrification strategies and compensation mechanisms for affected communities to improve energy equity.