ABSTRACT
The central concern of policymakers and households has been the impact of rising energy prices on energy expenditures paid directly by households. The fact that the lower income population resides in less energy-efficient housing means that its effective heating is even lower than it appears compared to the national average. The morally compelling concern about energy consumption stems from the fact that it is a vital necessity. At low levels of income, energy consumption declines slowly, approaching some minimum level of consumption. At high levels of income, it rises slowly, approaching some maximum level. Between 1978 and 1980, low income households reduced their energy consumption by about 10 percent and lower middle income households reduced theirs by about 19 percent. Inhabiting less efficient housing and constrained in their ability to improve its efficiency, lower income households are forced to take extreme measures to cut their energy consumption, which leads to considerable hardship.
