Differentiated experiences in disaster response and reconstruction: electricity consumption and inequality

Disaster research has focused on the macroeconomic impact of extreme phenomena. Recent research has focused more on how these phenomena impact households across various aspects of their livelihoods. According to the literature, in the case of energy consumption, a reduction can be expected in the short term, followed by an increase in consumption in the following years, depending on the intensity of the disaster and the capabilities of the household. To analyse the Mexican case, we used data from the three most recent National Surveys of Household Income and Expenses (2018, 2020, 2022) to examine changes in electricity consumption associated with disaster and emergency declarations that occurred during the billing period, as well as one month, one year, and two years prior. Regressions by income deciles were also used with information from almost 40,000 households per period across the country. Results show how phenomena such as heavy rains are associated with a decrease in energy consumption when occurring in a billing period before the one analysed, while earthquakes are associated with an increase in energy consumption two years after its occurrence. Low-middle income households and high-income households had an associated increase in consumption from heavy rains and earthquake declarations from previous years, with the possible effect of earthquakes being higher for both types of households.