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Sweating the energy bill: Extreme weather, poor households, and the energy spending gap

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  • Doremus, Jacqueline M.
  • Jacqz, Irene
  • Johnston, Sarah

Abstract

We estimate the relationship between temperature and energy spending for both low and higher-income U.S. households. We find both groups respond similarly (in percentage terms) to moderate temperatures, but low-income households’ energy spending is half as responsive to extreme temperatures. Consistent with low-income households cutting back on necessities to afford their energy bills, we find similar disparities in the food spending response to extreme temperature. These results suggest adaptation to extreme weather, such as air conditioning use, is prohibitively costly for households experiencing poverty.

Suggested Citation

  • Doremus, Jacqueline M. & Jacqz, Irene & Johnston, Sarah, 2022. "Sweating the energy bill: Extreme weather, poor households, and the energy spending gap," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:jeeman:v:112:y:2022:i:c:s0095069622000018
    DOI: 10.1016/j.jeem.2022.102609
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