Deadly tornadoes and racial disparities in energy consumption: Implications for energy poverty

Abstract

Although tornadoes are considered to be one of the deadliest natural disasters in the United States, there exists limited evidence on how such economic shocks may induce disparities in energy-related expenditures across socioeconomic groups and geographical locations. This article shows that a 10 percent increase in tornado-induced fatalities in the same county where a household resides causes a 1.5 percent decrease in annual expenditures allocated to electricity and a 1.1 percent decline in annual expenditures allocated to home heating fuel. Findings indicate that the low income-high cost (LIHC) measure of energy poverty induced by tornadoes is strong, negative and statistically significant among US households. Results further demonstrate that the severity of tornadoes exacerbates disparities in energy consumption between (i) whites and non-whites, and (ii) English speaking and non-English speaking households. Among 22 states where tornadoes caused at least one fatality, white households in Wisconsin, Pennsylvania, North Carolina, Mississippi, Louisiana, Georgia, Arkansas and Iowa experience decreases in home heating fuel expenditures. Declines in electricity expenditures induced by tornadoes are pronounced among non-white households in Pennsylvania, Indiana, Missouri, Louisiana, Kentucky, Oklahoma and New Hampshire. These findings can help policymakers determine which socioeconomic groups to target, and design policies to address energy-related needs in areas affected by natural disasters.