Increased energy use per capita is linked to decreased poverty rates. Modest energy increases can lead to significant poverty reduction, but the relationship is not always linear. Factors like governance and social policies also influence poverty levels. Beyond a certain threshold, further energy increases have diminishing returns.
While energy use is connected to prosperity, the relationship is not linear. Different countries achieve varying levels of prosperity at the same energy use per capita, and there are diminishing returns where increased energy use results in smaller improvements in prosperity. High levels of prosperity can be achieved with lower energy consumption.
Energy poverty is a significant concern in the United States, with over one in four households experiencing insecurity. Government programs like LIHEAP and WAP aim to address this issue, but funding levels often fall short of the need. A more comprehensive approach is necessary, considering the impact on well-being and addressing racial and socioeconomic disparities.
The COVID-19 pandemic worsened energy insecurity in the US, particularly for vulnerable populations. Prior to the pandemic, around 25% of low-income households struggled to pay energy bills, but during the early months of the pandemic, nearly 13% couldn’t afford them. Racial and ethnic disparities were exacerbated, with Black and Hispanic households facing higher odds of disconnection
The Human Development Index (HDI) measures overall well-being beyond economic growth, focusing on health, education, and income. Countries with low development levels use less energy, and small energy increases lead to significant HDI improvements. Energy efficiency improvements can be made without compromising quality of life, addressing environmental concerns and promoting equity.