Addressing energy insecurity: Policy Considerations for enhancing energy assistance programs

Abstract

Household energy consumption is crucial for a productive and safe life. Despite its importance, 33.7 million U.S. households experienced energy insecurity in 2020. This paper examines the prevalence, correlates, and effects of energy bill assistance programs, which aim to alleviate the hardship. This analysis relies on logistic regressions and the 2020 Residential Energy Consumption Survey, a nationally representative survey administered by the Energy Information Administration. Results reveal 16 percent of the energy insecure population received assistance to pay its energy bill in 2020. Several socioeconomic and housing characteristics are associated with receipt of assistance; however, logistic regression estimates suggest prior participation in energy assistance and receipt of a disconnection notice from a utility provider are indicators substantively and significantly associated with energy assistance participation that warrant attention from scholars and practitioners. Lastly, outcomes generally indicate previous participation in energy assistance does not impact the odds a household will experience energy insecurity. Based on findings, I offer three policy recommendations: 1) increase resources spent on energy assistance to align with demand; 2) enhance communication between utility providers and low-income households regarding available assistance opportunities; and 3) prioritize engagement with populations that never participated in energy assistance to facilitate successful application processes.