Implications of different income distributions for future residential energy demand in the U.S.

Future income distribution will affect energy demand and its interactions with various societal priorities. Most future model simulations assume a single average consumer and thus miss this important demand determinant. We quantify long-term implications of alternative future income distributions fo...

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Main Authors: Jon Sampedro, Gokul Iyer, Siwa Msangi, Stephanie Waldhoff, Mohamad Hejazi, James A Edmonds
Format: Article
Language:English
Published: IOP Publishing 2022-01-01
Series:Environmental Research Letters
Subjects:
Online Access:https://doi.org/10.1088/1748-9326/ac43df
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author Jon Sampedro
Gokul Iyer
Siwa Msangi
Stephanie Waldhoff
Mohamad Hejazi
James A Edmonds
author_facet Jon Sampedro
Gokul Iyer
Siwa Msangi
Stephanie Waldhoff
Mohamad Hejazi
James A Edmonds
author_sort Jon Sampedro
collection DOAJ
description Future income distribution will affect energy demand and its interactions with various societal priorities. Most future model simulations assume a single average consumer and thus miss this important demand determinant. We quantify long-term implications of alternative future income distributions for state-level residential energy demand, investment, greenhouse gas, and pollutant emission patterns in the United States (U.S.) by incorporating income quintiles into the residential energy sector of the Global Change Analysis Model with 50-state disaggregation. We find that if the income distribution within each U.S. state becomes more egalitarian than present, what means that the difference on income between the richest and poorest decreases over time, residential energy demand could be 10% (4%–14% across states) higher in 2100. This increase of residential energy demand will directly reduce energy poverty, with a very modest increment on economywide CO _2 emissions (1%–2%). On the other hand, if U.S. states transition to a less equitable income distribution than present, with the difference between richest and poorest increasing over time, residential energy demand could be 19% (12%–26% across states) lower. While this study focuses on a single sector, we conclude that to improve understanding of synergies and tradeoffs across multiple societal goals such as energy access, emissions, and investments, future model simulations should explicitly consider subregional income distribution impacts.
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spelling doaj.art-c771cd5a239246eaa8aba8af1e5d4da92023-08-09T15:23:26ZengIOP PublishingEnvironmental Research Letters1748-93262022-01-0117101403110.1088/1748-9326/ac43dfImplications of different income distributions for future residential energy demand in the U.S.Jon Sampedro0https://orcid.org/0000-0002-2277-1530Gokul Iyer1https://orcid.org/0000-0002-3565-7526Siwa Msangi2Stephanie Waldhoff3https://orcid.org/0000-0002-8073-0868Mohamad Hejazi4James A Edmonds5Joint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaJoint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaJoint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaJoint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaJoint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaJoint Global Change Research Institute, Pacific Northwest National Laboratory , College Park, United States of AmericaFuture income distribution will affect energy demand and its interactions with various societal priorities. Most future model simulations assume a single average consumer and thus miss this important demand determinant. We quantify long-term implications of alternative future income distributions for state-level residential energy demand, investment, greenhouse gas, and pollutant emission patterns in the United States (U.S.) by incorporating income quintiles into the residential energy sector of the Global Change Analysis Model with 50-state disaggregation. We find that if the income distribution within each U.S. state becomes more egalitarian than present, what means that the difference on income between the richest and poorest decreases over time, residential energy demand could be 10% (4%–14% across states) higher in 2100. This increase of residential energy demand will directly reduce energy poverty, with a very modest increment on economywide CO _2 emissions (1%–2%). On the other hand, if U.S. states transition to a less equitable income distribution than present, with the difference between richest and poorest increasing over time, residential energy demand could be 19% (12%–26% across states) lower. While this study focuses on a single sector, we conclude that to improve understanding of synergies and tradeoffs across multiple societal goals such as energy access, emissions, and investments, future model simulations should explicitly consider subregional income distribution impacts.https://doi.org/10.1088/1748-9326/ac43dfincome distributionenergy accessenergy demandenvironmental impacts
spellingShingle Jon Sampedro
Gokul Iyer
Siwa Msangi
Stephanie Waldhoff
Mohamad Hejazi
James A Edmonds
Implications of different income distributions for future residential energy demand in the U.S.
Environmental Research Letters
income distribution
energy access
energy demand
environmental impacts
title Implications of different income distributions for future residential energy demand in the U.S.
title_full Implications of different income distributions for future residential energy demand in the U.S.
title_fullStr Implications of different income distributions for future residential energy demand in the U.S.
title_full_unstemmed Implications of different income distributions for future residential energy demand in the U.S.
title_short Implications of different income distributions for future residential energy demand in the U.S.
title_sort implications of different income distributions for future residential energy demand in the u s
topic income distribution
energy access
energy demand
environmental impacts
url https://doi.org/10.1088/1748-9326/ac43df
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