Intersectionality of Heterogeneous Energy Consumption Changes following Thermal Energy Efficiency Rebates

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

Abstract

Energy insecurity, or a household’s inability to meet their energy needs, persists in the United States that is more likely to affect households with low income, racial/ethnic minorities, young children, electronic medical devices, or poor housing conditions. Government and utility run energy efficiency programs aim to improve energy affordability and reduce grid demand; however, little funding from utility programs is directed towards vulnerable populations. Current quasi-experimental and econometric evaluations of efficiency rebate programs often fail to capture the intersectional nature of these demographic factors. We use intersectionality to discuss the way overlapping social and economic identities create barriers to energy security that may be missed by a single-variable analysis. This study investigates how different types of households change energy consumption patterns after adopting more efficient thermal technologies (i.e., heat pumps, furnaces, air conditioning systems) through a utility rebate. Further, we compare households that only claim a rebate to those that also underwent an energy audit from a program targeting disadvantaged communities to better understand how more vulnerable households respond.

Using smart meter data from over 60,000 households in Tallahassee, Florida (2011–2016), we applied dynamic k-means clustering to analyze annual electricity consumption and percent of income spent on electricity. These clusters are characterized through U.S. Census data and temperature response functions to understand the clusters and the implications of membership shifts. Temperature response functions parameterize energy consumption with respect to outdoor weather temperatures. Our analysis reveals that three clusters best describe the households: average consumption, excessive consumption, and highly burdened. These clusters represent intersectional profiles. For example, the excessive consumption group has higher average household incomes, home ownership rates, electricity consumption levels with respect to outdoor temperature, and levels of white occupants. The highly burdened group captures households with lower income, greater participation in federal assistance programs, greater rental occupation, higher unemployment rates, and earlier use of heating equipment.

We find that households in the excessive consumption group that participated in the rebate program have greater decreases in energy consumption when they also have undergone an energy audit from the targeting program (REACH). Further, excessive consumption households are less likely to maintain excessive consumption when they undergo a REACH audit and claim a rebate compared to those accessing either one alone. Households in the highly burdened consumption group saw on average a smaller post-rebate energy decrease if they had participated in a REACH audit compared to without. This likely indicates that these households targeted by REACH were not previously meeting their thermal comfort needs as well as the households not targeted by REACH. Households in the average consumption group see similar energy changes after a rebate regardless of whether they underwent a REACH audit. By identifying how intersecting demographic and economic factors relate to a household’s respond to financial incentives, this research provides insights for designing more equitable energy policies that balance consumption reduction with meaningful economic relief and thermal comfort.

Author

• Lauren Janicke, Carnegie Mellon University
  Presenting Author