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Racial disparities in the energy burden beyond socio-economic inequality

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  • Baik, Sosung
  • Hines, Jeffrey F.
  • Sim, Jaeung

Abstract

The consequences of climate change are known to be more damaging to historically minoritized groups. Ironically, recent measures to mitigate carbon emissions often negatively influence these groups to a greater extent. Racial and ethnic minorities are one of the well-documented energy vulnerable groups in the residential energy sector. Existing studies primarily attributed the racial and ethnic minorities’ greater energy burden to socio-economic inequality, such as low income and inefficient housing, while other possible sources have received little empirical attention. Analyzing nationally representative U.S. households, we provide evidence that Blacks bear a greater energy burden than others unexplained by socio-economic inequality, and this additional energy burden is primarily driven by Blacks’ extra demand for space heating. Specifically, after controlling for regional, housing, demographic, and appliance/device characteristics, Blacks’ annual energy expenditure exceeds that of the other groups by US$1.6 billion. Examining this gap by end-use type and climate region, we reveal that this extra burden is primarily explained by Blacks’ additional needs for space heating. Further evidence shows that self-reported needs for health services due to low indoor temperature are closely associated with the racial difference in space heating needs. Our results highlight a blind spot yet to be covered by existing energy policies and point to possible recognition injustice.

Suggested Citation

  • Baik, Sosung & Hines, Jeffrey F. & Sim, Jaeung, 2023. "Racial disparities in the energy burden beyond socio-economic inequality," Energy Economics, Elsevier, vol. 127(PA).
  • Handle: RePEc:eee:eneeco:v:127:y:2023:i:pa:s0140988323005960
    DOI: 10.1016/j.eneco.2023.107098
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    More about this item

    Keywords

    Energy vulnerability; Racial inequality; Recognition injustice;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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