Racial disparities in the energy burden beyond socio-economic inequality

Sosung Baik, Jeffrey F. Hines and Jaeung Sim

Energy Economics, 2023, vol. 127, issue PA

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.

Keywords: Energy vulnerability; Racial inequality; Recognition injustice (search for similar items in EconPapers)
JEL-codes: D63 I14 Q40 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:127:y:2023:i:pa:s0140988323005960

DOI: 10.1016/j.eneco.2023.107098

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