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Energy Poverty: Effects on Housing and Household Wellbeing NLIEC 2005 June 15, 2005 Donnell Butler David Carroll Carrie PowerPoint Presentation
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Energy Poverty: Effects on Housing and Household Wellbeing NLIEC 2005 June 15, 2005 Donnell Butler David Carroll Carrie-Ann Ferraro. Organization of Presentation. Introduction – 10 minutes Arizona Analysis – 20 minutes Phoenix Area Analysis – 10 minutes Local Area Analysis – 5 minutes

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slide1

Energy Poverty: Effects on Housing

and Household Wellbeing

NLIEC 2005

June 15, 2005

Donnell Butler

David Carroll

Carrie-Ann Ferraro

organization of presentation
Organization of Presentation
  • Introduction – 10 minutes
  • Arizona Analysis – 20 minutes
  • Phoenix Area Analysis – 10 minutes
  • Local Area Analysis – 5 minutes
  • Indicators of Wellbeing – 10 minutes
  • Conclusion – 5 minutes
  • Questions / Feedback – 15 minutes
purpose of the project
Purpose of the Project
  • Furnish information about the energy needs of low-income households in Arizona to policymakers and program managers
  • Explore the linkages among energy poverty, housing affordability, and household well being
  • Demonstrate how existing data sources can be used to obtain useful information for policy formulation and program design
status of the project
Status of the Project
  • Preliminary Report – Presented NLIEC Board with an overview of available information
  • NLIEC Conference – Press conference and presentation
  • Final Report – Additional details that are responsive to suggestions from NLIEC Board and conference attendees
data sources for arizona
Data Sources for Arizona
  • 2000 Census Public-Use Microdata (PUMS)
    • 5 Percent Sample has about 19,000 LIHEAP eligible records
    • Data available includes:
      • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation
      • Housing Unit Characteristics: age of unit, unit type, home ownership
      • Energy Data: Main heating fuel, energy expenditures
data sources for arizona7
Data Sources for Arizona
  • 2002-2004 Current Population Survey, Annual Social and Economic Supplement (ASEC)
    • Statistical variances are too large for a single ASEC annual file to allow for a useful analysis for Arizona
    • Three-year average of 2002, 2003, and 2004 data used to estimate the FY 2003 LIHEAP eligible population
    • Data available includes:
      • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, household composition, employment, income program participation
definitions
Definitions
  • LIHEAP Eligible/Low Income - 150% of HHS Poverty Guidelines (Arizona Standard)
  • Energy Burden – Direct energy expenditures as a share of gross money income
  • Energy Gap – Difference between client energy burden and any target burden
limitations
Limitations
  • Maximum Income Standard – Federal maximum income standard covers at least 50% more households
  • Renters – About 15% of households pay for part or all of their energy through their rental payments
  • Update – Information not yet updated for recent increases in energy prices and poverty
arizona information needs
Arizona Information Needs
  • Policymakers and program managers need:
    • State-level cross-sectional data to understand current status for Arizona
    • State-level longitudinal data to understand trends for Arizona
    • National-level data to understand how those energy needs compare to households nationwide
arizona liheap eligible population
Arizona LIHEAP Eligible Population

Arizona LIHEAP Eligible Households (2000 and 2003)

1 Source: 2000 Decennial Census PUMS 5 Percent Sample.

2Source: Three-year Average of the CPS ASEC 2002-2004.

arizona liheap recipient population
Arizona LIHEAP Recipient Population

Arizona LIHEAP Eligible and Recipient Households (2003)

1 Source: Three-year Average of the CPS ASEC 2002-2004.

2 Source: LIHEAP Household Reports FY 2004.

arizona liheap eligible energy expenditures
Arizona LIHEAP EligibleEnergy Expenditures

Energy Expenditures for Arizona LIHEAP Eligible Households (1999)

Source: 2000 Decennial Census PUMS 5 Percent Sample.

energy burden
Energy Burden
  • Percent of total household income spent on total residential energy.
  • At the national level, the median residential energy burden was 3 percent for all households and 10 percent for all low-income households in 2003.
arizona liheap eligible energy burden
Arizona LIHEAP Eligible Energy Burden

Energy Burden for Arizona LIHEAP Eligible Households (1999)

Source: 2000 Decennial Census PUMS 5 Percent Sample.

energy gap
Energy Gap
  • The dollar amount needed to reduce a customer’s energy burden to an amount equal to a specified energy burden percentage.
  • At the national level, about $4.9 billion dollars in energy assistance would have been needed to ensure that no low-income household spent more than 15% of income on residential energy in 2003. The amount required to reduce residential energy bills to 25% of income was $2.7 billion.
arizona liheap eligible energy gap
Arizona LIHEAP Eligible Energy Gap

Energy Gap for Arizona LIHEAP Eligible Households (1999)

2000 Source: 2000 Decennial Census PUMS 5 Percent Sample.

arizona energy assistance
ArizonaEnergy Assistance

1 2000 Decennial Census PUMS 5 Percent Sample.

2FY 2004 LIHEAP Grantee Survey for FY 2004.

3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

arizona liheap eligible vulnerable group members
Arizona LIHEAP EligibleVulnerable Group Members

Arizona LIHEAP Eligible Households with Any Vulnerable Group Members (2003)

Source: Three-year Average of the CPS ASEC 2002-2004.

arizona liheap eligible linguistic isolation
Arizona LIHEAP EligibleLinguistic Isolation

Linguistically Isolated Arizona LIHEAP Eligible Households (2000)

Source: 2000 Decennial Census PUMS 5 Percent Sample.

arizona liheap eligible summary of findings
Arizona LIHEAP EligibleSummary of Findings
  • LIHEAP Eligible – 363,000 in 2000 to 436,000 in 2003
  • Energy Burden – Average almost 10% of income
  • 1999 Energy Gap – $222 million for 5% burden target
  • 2003 Energy Assistance – $22 million from all sources
  • Vulnerable households - 73% of LIHEAP eligible households have a vulnerable household member
  • Spanish language isolation – 15% of LIHEAP eligible households do not have a household member who speaks English “very well”.
data sources for phoenix
Data Sources for Phoenix
  • 2002 American Housing Survey (AHS) Phoenix Metropolitan Area Sample
    • Metropolitan Area Sample has about 650 LIHEAP eligible records
    • Estimates are not available at the state level from the national AHS sample
    • Several Metropolitan Areas are surveyed each year
    • Phoenix was most recently surveyed in 2002 & 1994
data sources for phoenix25
Data Sources for Phoenix
  • 2002 American Housing Survey (AHS), Phoenix Metropolitan Area Sample(continued)
    • Data available includes:
      • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, household composition,
      • Housing Unit Characteristics: unit type, home ownership, housing adequacy, housing costs
      • Energy Data: Main heating fuel, energy expenditures, heating and cooling equipment
definitions and limitations
Definitions and Limitations
  • Shelter Burden – Direct housing expenditures as a share of gross money income
  • Phoenix-Mesa Metropolitan Area
    • Maricopa and Pinal Counties
  • Limitations similar to state level data
phoenix information needs
Phoenix Information Needs
  • Phoenix policymakers & program managers need:
    • Information related to demographic characteristics and energy needs of low-income households
    • Information on the relationship between energy needs and other low-income needs, including housing, to promote the integration of programs aimed at assisting low-income households
phoenix liheap eligible population
Phoenix LIHEAP EligiblePopulation

Phoenix LIHEAP Eligible Households (2002)

Source: 2002 American Housing Survey, Phoenix Metropolitan Area Sample.

phoenix liheap eligible energy burden
Phoenix LIHEAP Eligible Energy Burden

Energy Burden for Phoenix LIHEAP Eligible Households (2002)

Source: 2002 American Housing Survey, Phoenix Metropolitan Area Sample.

shelter burden
Shelter Burden
  • Percent of total household income spent on total housing costs (including residential energy costs) .
  • Affordable housing (HUD definition): “housing for which the occupant is paying no more than 30 percent of his or her income for gross housing costs, including utilities”.
  • Some researchers have defined severe shelter burden more conservatively as a household that spends 50 percent or more of their income on shelter costs.
phoenix liheap eligible shelter burden
Phoenix LIHEAP Eligible Shelter Burden

Shelter Burden for Phoenix LIHEAP Eligible Households (2002)

Source: 2002 American Housing Survey, Phoenix Metropolitan Area Sample.

phoenix liheap eligible shelter burden of 50 or greater
Phoenix LIHEAP Eligible Shelter Burden of 50% or Greater

Energy Burden when Shelter Burden is 50% or Greater for Phoenix LIHEAP Eligible Households (2002)

Source: 2002 American Housing Survey, Phoenix Metropolitan Area Sample.

phoenix liheap eligible summary of findings
Phoenix LIHEAP EligibleSummary of Findings
  • Energy burden distribution is similar to Arizona.
  • 52% of Arizona LIHEAP eligible households experience severe shelter burden.
  • Energy burden has a substantial impact on housing affordability.
neighborhood data sources
Neighborhood Data Sources
  • 2000 Census Summary File 3 (SF3)
    • Data is limited to entire population; does not offer estimates of LIHEAP eligible population
    • Data available includes:
      • Household Demographics: income level, age of householder, race and ethnicity, languages spoken, household composition, income program participation
      • Housing Unit Characteristics: age of unit, unit type, home ownership
      • Energy Data: Main heating fuel
neighborhood data sources37
Neighborhood Data Sources
  • 2000 Census Special Tabulations
    • Estimates of the LIHEAP eligible population can be obtained from the Census Bureau for small areas, including Census Blocks, Block Groups, and Tracts
    • Data available includes:
      • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation
      • Housing Unit Characteristics: age of unit, unit type, home ownership
      • Energy Data: Main heating fuel, energy expenditures
neighborhood data needs
Neighborhood Data Needs
  • Local program managers need local-level information about the population in their communities in order to:
    • Effectively implement programs
    • Target outreach initiatives
    • Improve integration of energy assistance programs with other programs designed to assist low-income households
indicators of wellbeing data sources
Indicators of Wellbeing Data Sources
  • Effects of Energy Poverty on Housing and Household Wellbeing
  • 2003 National Energy Assistance Survey of LIHEAP Recipients:
    • Sponsored by NEADA
    • Survey instrument is publicly available
    • Interviewed a nationally representative sample of over 2,000 LIHEAP-recipient households from 20 states
    • Documented the choices that LIHEAP-recipient households make when faced with unaffordable home energy bills
limitations41
Limitations
  • Survey Response Challenges:
    • Relying on Respondent Memory
    • Response bias (e.g., prideful responses)
    • Inability to control response situation
  • Population
    • Having received benefits, LIHEAP recipients might be better off than LIHEAP eligible
indicators of wellbeing housing problems
Indicators of Wellbeing Housing Problems

Housing Problems Experienced by LIHEAP Recipient Households (2003)

Source: 2003 National Energy Assistance Survey.

indicators of wellbeing household wellbeing
Indicators of Wellbeing Household Wellbeing

Sacrifices to Wellbeing by LIHEAP Recipient Households (2003)

Source: 2003 National Energy Assistance Survey.

indicators of wellbeing effects on health
Indicators of Wellbeing Effects on Health

Health Problems Experienced by LIHEAP Recipient Households (2003)

Source: 2003 National Energy Assistance Survey.

indicators of wellbeing summary of findings
Indicators of Wellbeing Summary of Findings
  • In the last five years, due to their energy bills:
    • 28% of respondents reported that they missed a rent or mortgage payment.
    • 22% of respondents reported that they went without food for at least one day.
    • 38% of respondents reported that they went without medical or dental care.
    • 21% of respondents reported that they became sick because their home was too cold
conclusion
Conclusion
  • Using existing data sources, one can develop a broad array of information about the energy needs of low-income households.
    • All data used for this presentation are publicly available.
  • Data is available to explore linkages among energy poverty, housing affordability, and household wellbeing.
  • Information can be used by policymakers and program managers to make effective decisions related to program design, operations and evaluation.
slide48

Energy Poverty: Effects on Housing

and Household Wellbeing

NLIEC 2005: June 15, 2005

Donnell Butler (donnell-butler@appriseinc.org)

David Carroll (david-carroll@appriseinc.org)

Carrie-Ann Ferraro (carrie-ann-ferraro@appriseinc.org)

http://www.appriseinc.org/

Phone: 609-252-8008