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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Home Energy Costs

Where the poor spend more than 10 percent of their income on energy, By Adam Chandler, June 8, 2016, The Atlantic: “From childcare to payday loans, to the difficulty of buying in bulk and beyond, the list of what makes being poor so expensive is long already. And here’s another: energy-related expenses. The threshold beyond which experts believe energy ceases to be ‘affordable’ is 6 percent of a household’s income. But for many lower-income households, even with declining energy prices, paying less than that benchmark is a fantasy. DeAndrea Newman Salvador, an economist and the founder of The Renewable Energy Transition Initiative, a nonprofit, studied the cost of home utilities in her native North Carolina and found that energy expenditures among low-earning households were staggeringly high…”