Who’s Afraid of Energy-Efficiency Upgrades?

• In Event: Understanding Participation and Outcomes in Energy Programs - Evidence from Households, Cities, and States

Abstract

Since 2006, U.S. households have received more than $47 billion in tax credits for adopting energy technologies such as heat pumps and solar panels, yet these tax credits have been predominantly claimed by higher-income tax filers (Bornstein & Davis, 2025). How low-and-moderate-income (LMI) households can benefit from the clean energy transition remains a policy challenge for the U.S. Scholars have called for more investment in policies such as weatherization that improve a home’s energy efficiency in the long-term for vulnerable populations (Lewis et al., 2020). Understanding the factors that potentially contribute to LMI households’ willingness to engage with energy programs and adopting energy-efficiency upgrades will help policy makers design a more targeted approach toward program outreach. 

This study utilizes the data from an original survey conducted in summer 2021 with authentic low-to-moderate-income first-time homeowners across the U.S. I employ regression analyses to investigate predictors of willingness to engage with weatherization and other energy programs using a combination of household- and zip-code level data. I found that older LMI homeowners may be particularly in need of policy outreach: They find weatherization information less easy to understand, are less willing to pay for programs, and are distrustful of weatherization programs paid through on-bill products than younger homeowners. Respondents living in older buildings are particularly interested compared to those living in newer buildings—they are willing to pay a higher amount for weatherization programs when they are at a cost and are also more interested in other energy programs beyond weatherization. At the area level, respondents living in areas with higher percentages of minorities show more interest in energy programs beyond weatherization, and are more likely to choose receiving free programs and incentives as a consideration for making home energy decisions than White respondents. However, Asian, African American, and Hispanic or Latino respondents are all less willing to engage with weatherization programs paid for through on-bill products compared to White respondents, highlighting the need for better energy-related communication within these communities. 

In our further analysis, I plan to investigate the non-monetary burdens preventing the take-up of energy-efficiency upgrades. Thinking about or planning energy-efficiency upgrades could be cognitively exhausting to homeowners who already have energy-related stress. In my 2021 survey, respondents reported their stress about paying energy bills. I construct a profile from the original survey sample of who are more likely to be have energy-related stress. Then, using propensity score matching techniques, I apply the profile matching those in the Residential Energy Consumption Survey and the American Housing Survey sample to identify the respondents who are more likely to be stressed about energy. Because these surveys contain questions on whether homeowners actually adopted energy efficiency upgrades, I can predict whether respondents with profiles indicating high energy-related stress are, paradoxically, less likely to adopt energy efficiency upgrades.

Author

• Catherine Chen, Hamilton College
  Presenting Author