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Climate crisis on energy bills: Who bears the greater burden of extreme weather events?

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  • Lei, Xue
  • Xu, Xueguo

Abstract

The increasing frequency of extreme weather events driven by global climate change poses a critical threat to energy system vulnerability and household energy security. Using meteorological data from NOAA and Chinese weather stations (2012–2022), this study examines the impact of extreme climate risks on household energy poverty. Our findings reveal two significant transmission channels: infrastructure disruption and price fluctuation. Extreme weather events compromise energy infrastructure stability and cause supply interruptions, while temperature extremes trigger energy price volatility and increase household expenditure burdens. We further find that regions with weak infrastructure, areas prone to natural disasters, and low-income households are particularly vulnerable to these impacts. These findings suggest that climate change may exacerbate social inequality through energy poverty channels.

Suggested Citation

  • Lei, Xue & Xu, Xueguo, 2025. "Climate crisis on energy bills: Who bears the greater burden of extreme weather events?," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524005871
    DOI: 10.1016/j.econlet.2024.112103
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    References listed on IDEAS

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    1. Eric Scheier & Noah Kittner, 2022. "A measurement strategy to address disparities across household energy burdens," Nature Communications, Nature, vol. 13(1), pages 1-11, December.
    2. Christian L. E. Franzke & Marcin Czupryna, 2020. "Probabilistic assessment and projections of US weather and climate risks and economic damages," Climatic Change, Springer, vol. 158(3), pages 503-515, February.
    3. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Lin, Jian, 2021. "Racial disparities in energy poverty in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
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    Citations

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    Cited by:

    1. Takako Mochida & Andrew Chapman & Benjamin Craig McLellan, 2025. "Exploring Energy Poverty: Toward a Comprehensive Predictive Framework," Energies, MDPI, vol. 18(10), pages 1-23, May.
    2. Jia, Zhao & Feng, Tianyuan & Jing, Huiting, 2025. "Digital finance and sustainable lending in rural china: The role of fintech in green credit expansion," Finance Research Letters, Elsevier, vol. 86(PB).
    3. Duan, Kai & Qin, Chuan & Ma, Shenglin & Lei, Xue & Hu, Qianqian & Ying, Jinhuika, 2025. "Impact of ESG disclosure on corporate sustainability," Finance Research Letters, Elsevier, vol. 78(C).
    4. Du, He & Bi, Chaowen & Yan, Jiale, 2025. "Extreme climate risk and energy consumption structure," Finance Research Letters, Elsevier, vol. 80(C).
    5. Zhao, Hongwei & Liao, Weidong, 2025. "The nexus between climate risk and corporate green innovation: the moderating role of supply chain finance," Finance Research Letters, Elsevier, vol. 85(PB).
    6. Xin Jin & Shuhao Liu & Xue Lei, 2026. "ICT investment and carbon emission efficiency in regional port groups: evidence from Chinese coastal provinces," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-18, December.
    7. Zhe Wang & Jian Xu & Ziyan Zhang & Xue Lei, 2025. "Pressure Makes Diamonds: Do Extreme Climate Risks Force Firms to Innovate Green?," Sustainability, MDPI, vol. 17(20), pages 1-29, October.

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    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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