Energy prices, energy poverty and health: Evidence from a US cohort study

Alyvia McTague and Elisa Trujillo-Baute

Economic Analysis and Policy, 2025, vol. 87, issue C, 315-332

Abstract: This research explores the intricate connection between energy prices, energy poverty (EP) and physical and mental health outcomes among a representative sample of individuals aged over 50 in the United States. Utilizing 10 waves of longitudinal panel data from the Health & Retirement Study (HRS), we delve into an uncharted dimension of energy poverty research within the U.S., focusing on a particularly vulnerable subset of the population. We benefit from the climatic diversity across the different states, utilizing a two-way fixed effects and propensity score matching method to determine the causal impacts of both higher energy prices and the situation of energy poverty. Distinguishing our research is its emphasis on this specific demographic within the context of the United States, where energy insecurity and the absence of formal recognition of energy poverty persist. Employing a reduced form approach to evaluate the effect of energy prices on health, our results indicate a consistently negative relationship between higher energy prices and good health using our various indicators. We also delve into the potential mechanism of energy poverty, and find that being in energy poverty is associated with poorer health and higher depressive symptoms, along with an increase in weight as indicated by BMI. This study holds potential implications for the development of targeted interventions and policies addressing energy poverty among retirees and older adults in the U.S., offering valuable insights into the factors influencing health outcomes within this demographic. The findings underscore the pressing need for policy interventions to mitigate the health consequences of energy poverty.

Keywords: Energy poverty; Health; Energy prices (search for similar items in EconPapers)
JEL-codes: I10 I32 Q40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:315-332

DOI: 10.1016/j.eap.2025.05.027

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