New Approaches for Analyzing Distributional & Environmental Impacts of Energy & Climate Policies with Focus on Energy Affordability; Using Artificial Intelligence & Causal Inference

Energy use in the United States relies more and more on the electricity grid. There are a wide range of challenges that the electricity grid is facing including the technical, environmental, and economic impacts of the grid for end users. One of the most pressing issues with the energy infrastructure is the affordability of the energy for all citizens. This research focuses on finding out how consumers with various income levels would respond to different financial incentives, with a special focus on lower income households. In particular, it investigates if low-income households are reducing their energy consumption due to financial constraints. Although not a new issue, energy burden has recently attracted more attention. To illustrate this issue, Chapter 1 of this analysis focuses on the city of Atlanta due to the significant energy costs experienced by its residents. This analysis was conducted at the Census Tract level, enabling a detailed examination of the phenomenon. Machine learning techniques were employed to identify the factors contributing to energy burden, particularly in relation to segregation, as indicated by mortgage denial rates. Lawmakers have tried to address the issue of energy burden through proposing various policies. One of these programs is referred to as the “Green New Deal”. Chapter 2 of this analysis compares different tax scenarios to assess the potential effectiveness of this policy in alleviating the energy burden faced by low-income households. The other aspect of the Green New Deal proposal is the return of the tax revenue to regional economies for economic growth and job creation, which can also impact the availability of resources for low-income households (in turn, affecting their energy burden).In this Chapter a new approach to study the comprehensive impact of the Green New Deal (at the national, regional, and local level) is introduced. The last Chapter focuses on reviewing existing policies that have been adopted across the world, and then investigates the impact of government programs to help low-income electricity consumers. The results give a new perspective into how decision makers should think about resolving existing challenges with the tools that they have. This chapter examines a range of policy options, such as net metering, dynamic pricing, and subsidies, by employing a quasi-experimental methodology in light of the global pandemic. The potential impact of cash transfers and financial incentives for low-income households was estimated in the last Chapter. Specifically, this Chapter reveals how consumers might deploy these financial resources under varying circumstances, taking into account technological advancements and pricing mechanisms. A distinctive policy involving extra financial payments, marking the largest cash transfers on a large scale, took place between April and July 2020, coinciding with statewide lockdowns that continued until the end of 2020. This unique circumstance provides an exceptional opportunity to investigate whether low-income users would alter their energy usage more than other citizens, due to additional financial resources at their disposal.

Date

2024-05-06

Resource Type

Text

Resource Subtype

Dissertation

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