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High temperatures and electricity disconnections for low-income homes in California

Author

Listed:
  • Alan Barreca

    (University of California–Los Angeles
    Institute of Labor Economics
    National Bureau of Economic Research)

  • R. Jisung Park

    (Institute of Labor Economics
    University of California–Los Angeles)

  • Paul Stainier

    (University of California–Los Angeles)

Abstract

Evidence suggests that households adapt to hot weather by employing energy-intensive technologies, such as air conditioning. Ensuing energy expenses might cause some low-income households to incur insurmountable energy debt and eventually become disconnected due to non-payment. Here we examine this possibility using electricity use and disconnection data for 300,000 low-income households from California 2012–2017. We find that each additional day with a maximum temperature of 95 °F causes electricity expenses to increase by 1.6% in the current billing period, and the relative risk of disconnection to increase by 1.2% 51–75 days later. In the context of climate change, a back-of-the-envelope calculation indicates the average risk of disconnection would increase by 12% if today’s weather resembled projected weather for the 2080–2099 period.

Suggested Citation

  • Alan Barreca & R. Jisung Park & Paul Stainier, 2022. "High temperatures and electricity disconnections for low-income homes in California," Nature Energy, Nature, vol. 7(11), pages 1052-1064, November.
    • Handle: RePEc:nat:natene:v:7:y:2022:i:11:d:10.1038_s41560-022-01134-2
    DOI: 10.1038/s41560-022-01134-2
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    Cited by:

    1. Khadijah Iddrisu & Isaac Ofoeda & Joshua Yindenaba Abor, 2023. "Inward foreign direct investment and inclusiveness of growth: will renewable energy consumption make a difference?," International Economics and Economic Policy, Springer, vol. 20(3), pages 367-388, July.
    2. Jones, Andrew & Nock, Destenie & Samaras, Constantine & Qiu, Yueming (Lucy) & Xing, Bo, 2023. "Climate change impacts on future residential electricity consumption and energy burden: A case study in Phoenix, Arizona," Energy Policy, Elsevier, vol. 183(C).
    3. Shihan Xie & Victoria Wenxin Xie & Xu Zhang, 2024. "Extreme Weather and Low-Income Household Finance: Evidence from Payday Loans," Staff Working Papers 24-1, Bank of Canada.
    4. Shi, Han & Wang, Bo & Qiu, Yueming Lucy & Deng, Nana & Xie, Baichen & Zhang, Bin & Ma, Shijun, 2024. "The unequal impacts of extremely high temperatures on households’ adaptive behaviors: Empirical evidence from fine-grained electricity consumption data," Energy Policy, Elsevier, vol. 190(C).
    5. Zhang, Guoxing & Shen, Lin & Su, Bin, 2023. "Temperature change and daily urban-rural residential electricity consumption in northwestern China: Responsiveness and inequality," Energy Economics, Elsevier, vol. 126(C).
    6. Deng, Nana & Wang, Bo & Wang, Zhaohua, 2023. "Does targeted poverty alleviation improve households’ adaptation to hot weathers: Evidence from electricity consumption of poor households," Energy Policy, Elsevier, vol. 183(C).
    7. Lee V. White & Bradley Riley & Sally Wilson & Francis Markham & Lily O’Neill & Michael Klerck & Vanessa Napaltjari Davis, 2024. "Geographies of regulatory disparity underlying Australia’s energy transition," Nature Energy, Nature, vol. 9(1), pages 92-105, January.

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