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

Xue Lei and Xueguo Xu

Economics Letters, 2025, vol. 247, issue C

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.

Keywords: Extreme climate risk; Energy poverty; Vulnerability; Infrastructure Resilience (search for similar items in EconPapers)
JEL-codes: I32 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524005871

DOI: 10.1016/j.econlet.2024.112103

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