• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Extreme heat is prompting higher home cooling costs. It is also putting some individuals at risk

by July 31, 2024
written by July 31, 2024

Amid surging summer heat, the earth reached a new hottest day on record on July 22.

That day, the global average temperature was almost 63 degrees Fahrenheit, and was surrounded by similar high temperature days.

Across the U.S. this summer, many areas have experienced unrelenting heat waves.

As a result, many Americans face a tough tradeoff between paying higher cooling costs or suffering in the heat to save money, research finds.

This year, extreme heat is projected to lead home cooling to cost an average of $719 from June through September — up nearly 8% from $661 for the same period in 2023 — the National Energy Assistance Directors Association and the Center for Energy, Poverty and Climate estimate.

Home cooling costs have risen in the past decade as higher temperatures require more electricity.

And those higher temperatures are expected to get worse, with the U.S. by the end of the century projected to have at least 50 days per year with maximum temperatures above 95 degrees, according to new research from the JPMorgan Chase Institute.

“We’re seeing more and more high heat days and the impact of climate change,” said Heather Higginbottom, head of research, policy and insights for corporate responsibility at JPMorgan Chase. “That’s another expense that families and households have to manage.”

Low-income households may be poised to suffer most amid rising temperatures.

During hot days, low-income households tend to go without cooling to save money. They spend 37% to 45% less on air conditioning than high-income households, JPMorgan Chase Institute found, based on an analysis of anonymized firm data.

For most households, the higher electricity bills have limited effects on other spending. In Houston, an extra 95-degree day contributes to less than $1 in foregone spending for the average family, according to the JPMorgan Chase Institute’s research.

In two other cities the research evaluated — Los Angeles and Chicago — there was no statistically detectable effect.

“Lower-income households will spend less on air conditioning than middle- or higher-income households on high heat days, and essentially just go without cooling their homes as effectively for financial reasons,” Higginbottom said.

Rising energy prices have a greater impact on lower-income families because those increases take up a larger share of their budgets, according to Mark Wolfe, executive director of the National Energy Assistance Directors Association.

For a high-income family, higher energy bills may push those costs from 3% to 3.1% of their budgets, a difference that likely won’t substantially impact their lives, Wolfe said.

But for low-income families, the share of those costs in their budgets may go from 8.3% to 11%, and substantially limit their discretionary income, he said.

Those low-income families tend to disproportionately include young children, elderly or disabled individuals, which means higher heat also poses a significant health risk, Wolfe said.

While policies can help those vulnerable populations, it is a race against time, as temperatures rise faster than expected, he said.

“We’re having extended periods of very high temperatures, and we’re not prepared for it,” Wolfe said.

Two policy approaches can help, according to Wolfe — immediate help for people pay their cooling bills and long-term efforts to retrofit housing for low-income families so they can access affordable and modern cooling systems.

In the meantime, many families may be at risk of shut offs if they can’t pay their bills.

Turning up the temperature on the thermostat — say from 72 degrees to 78 degrees — can help reduce cooling costs. Installing more insulation can also result in savings, according to experts.

But this summer is a “wake up call” that bigger changes need to happen, Wolfe said.

“This is going to be expensive to adapt,” Wolfe said. “There’s no inexpensive solution.”

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Uber to integrate 100,000 BYD electric vehicles in Europe and Latin America
next post
Flashback: Harris proposed middle class tax increase for ‘Sanders-lite’ health care plan

related articles

Mortgage rates see biggest one-day drop in over...

September 5, 2025

Paramount mandates 5-day-a-week return to office ahead of...

September 5, 2025

Apple has survived Trump’s tariffs so far. It...

September 4, 2025

Trump family’s American Bitcoin makes stock market debut

September 4, 2025

Disney to pay $10 million to settle FTC...

September 4, 2025

Crash victims’ families prepare to make what could...

September 3, 2025

Amazon cracks down on Prime free shipping sharing

September 3, 2025

U.S. judge orders Google to share search data...

September 3, 2025

Kraft Heinz to split into two companies

September 2, 2025

Rhode Island’s ‘Taylor Swift Tax’ on vacation homes...

September 2, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • MLK celebration and Trump inauguration: What one historic day means for America

    January 20, 2025
  • How Trump and Speaker Johnson could force the Senate to adjourn, allow recess appointments

    November 19, 2024
  • Boeing says it’s progressing on safety reforms and working with DOJ on revised plea deal

    April 3, 2025
  • Power outage doesn’t slow down Vance prep for Tuesday’s VP debate with Walz

    September 30, 2024
  • Medical groups urge Kennedy, FDA to reexamine broad approval of abortion drugs

    July 8, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,925)
  • Investing (634)
  • Stock (922)

Latest Posts

  • Bitcoin ETF open interest dips 5% to $29.47B as BTC holds near $102.9K

    May 19, 2025
  • Is Rolls-Royce share price a 52% bargain ahead of earnings?

    July 31, 2024
  • Harris-Trump 2024 Showdown: What a new post-debate national poll shows

    September 12, 2024

Recent Posts

  • Stellantis share price has collapsed: death cross points to more pain

    March 6, 2025
  • Trump’s latest hires and fires rankle Iran hawks as new president suggests nuclear deal

    January 24, 2025
  • Vance brands Harris a ‘coward’; Trump dinged for ‘attacks and insults’ as campaigns war after fiery event

    July 31, 2024

Editor’s Pick

  • Judge rules DOGE likely subject to public records requests, says department operating in ‘unusual secrecy’

    March 11, 2025
  • Trump’s Art of the Deal turns around an unwinnable war against Ukraine

    February 26, 2025
  • RFK Jr. says Trump White House will get fluoride out of drinking water

    November 3, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock