Millions of low-income families already face crushingly high burdens of energy costs. High energy costs burdens as a percentage of income are a principal cause of financial distress, creating conflicts between paying utility bills or rent or buying medicines and food. The consequences include ill-health, insecurity, and, in many cases, evictions and mortgage foreclosures. Six percent of income is considered the maximum affordable amount for utility bills (1); for low-income households energy burdens are often 10 to 15 percent and as high as 30 percent, and sometimes more, for the lowest income groups. What is the magnitude of the gap between actual energy bills and affordable energy even before extreme weather events exacerbated by climate change make it worse? I summed it all up in a paper on energy burdens I prepared for the Just Solutions Collective here, co-published with the Climate and Clean Energy Equity Fund. The objective was to elevate the need to address energy burden, as well as provide budget numbers for advocacy groups while Congress was considering a 36 to 30 billion. This is not a large sum in the federal scheme of things; it amounts to about half-a-percent of the anticipated federal budgets in the early to mid-2020s. Considering it would greatly alleviate financial stress and suffering among more than 30 million families, it can...
Will clean energy impoverish the poor or help create a path to energy justice? (Part I)
Arjun Makhijani, Ph.D
7 min read


