Racial disparities in the energy burden beyond socio-economic inequality

Abstract

The consequences of climate change are known to be more damaging to historically minoritized groups. Ironically, recent measures to mitigate carbon emissions often negatively influence these groups to a greater extent. Racial and ethnic minorities are one of the well-documented energy vulnerable groups in the residential energy sector. Existing studies primarily attributed the racial and ethnic minorities’ greater energy burden to socio-economic inequality, such as low income and inefficient housing, while other possible sources have received little empirical attention. Analyzing nationally representative U.S. households, we provide evidence that Blacks bear a greater energy burden than others unexplained by socio-economic inequality, and this additional energy burden is primarily driven by Blacks’ extra demand for space heating. Specifically, after controlling for regional, housing, demographic, and appliance/device characteristics, Blacks’ annual energy expenditure exceeds that of the other groups by US$1.6 billion. Examining this gap by end-use type and climate region, we reveal that this extra burden is primarily explained by Blacks’ additional needs for space heating. Further evidence shows that self-reported needs for health services due to low indoor temperature are closely associated with the racial difference in space heating needs. Our results highlight a blind spot yet to be covered by existing energy policies and point to possible recognition injustice.