Energy Affordability: The Hidden Barrier to Housing Stability
DOI:
https://doi.org/10.58425/jegs.v4i4.464Keywords:
Energy affordability, housing stability, energy efficiency, eviction prevention, low-and-moderate-income households (LMI)Abstract
Aim: The aim of this study is to examine the relationship between energy costs, energy inefficiency, and housing instability among low-and-moderate-income households, and to assess the potential of energy efficiency upgrades as a sustainable solution to energy poverty.
Methods: The study adopts a descriptive and analytical approach, drawing on existing data and literature on household energy expenditures, income distribution, and housing stability in the United States and Europe. It analyzes the proportion of household income spent on energy by low-and-moderate-income families and evaluates documented impacts of energy conservation technologies such as weatherization and appliance replacement on energy consumption and household expenses.
Results: The findings indicate that low-and-moderate-income households spend a disproportionately high share of their income on energy costs, often between 10 percent and 15 percent, compared to 3 percent to 5 percent for middle-income households. This imbalance contributes to energy poverty, which affects a significant proportion of lower-income families and is closely linked to housing instability and eviction risks. Energy efficiency upgrades are shown to reduce household energy consumption by approximately 20 percent to 40 percent, resulting in meaningful financial relief and improved household stability.
Conclusion: The study concludes that energy inefficiency is a significant driver of energy poverty and housing instability among vulnerable households. Improving residential energy efficiency can reduce financial pressure, support consistent rent or mortgage payments, and promote long-term housing stability for low-and-moderate-income families.
Recommendations: The study recommends that policymakers integrate energy efficiency measures into housing and social welfare policies targeting low-and-moderate-income households. Investments in energy conservation technologies, combined with supportive regulatory frameworks, can contribute to affordable energy access, reduced eviction risk, and more stable housing outcomes for vulnerable populations.
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