Postprint version. Published in Journal of Environmental Economics and Management, Volume 112, March 1, 2022.
The definitive version is available at https://doi.org/10.1016/j.jeem.2022.102609.
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.
© 2021 Elsevier
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