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U.S. Department of Energy
Office of Scientific and Technical Information

Impact of rising residential energy prices on the low-income population: an analysis of the home-heating problem and short-run policy alternatives. Technical Analysis Paper No. 3

Technical Report ·
OSTI ID:5911028

This paper explores the effect of rapidly rising home-heating costs on the lower income population and analyzes various short-run policy alternatives to ameliorate this impact. Determinants of home heating costs, including climate, housing characteristics type of fuel used, and fuel prices, are explored, and regional variations in home heating cost increases are traced. The home-heating problem faced by low-income households is examined, and it is noted that their homeheating needs are lower than those of other income classes because they are more likely to live in warmer climates and occupy smaller homes. Additionally, they are less likely to live in single-unit dwellings. However, while actual dollar increases in cost may be somewhat smaller for the poor, the proportion of their income spent on home heating needs is much higher than for the non-poor. Thus, low-income households are likely to suffer greater hardships in meeting fuel increases. Current income-transfer programs are found to be responsive to these rising costs in various ways and degrees.

Research Organization:
Department of Health, Education, and Welfare, Washington, DC (USA). Office of Income Security Policy
OSTI ID:
5911028
Report Number(s):
SHR-0012345/XAB
Country of Publication:
United States
Language:
English