Wednesday, July 1, 2015
Why Keeping Energy Costs Low Benefits the Poor the Greatest...
The chart above shows the share of after-tax income spent on energy by income quintiles in 2013.
For example, households in the lowest income quintile in the US spent an average of $971 in 2013 on electricity ($81 per month), $1,231 on gas and motor oil ($102.50 per month) and $217 on natural gas, for total energy spending of $2,419.
Based on average disposable income of $10,092 in 2013, the poorest 20% of American households spend 24% of their after-tax income on energy.
As the chart shows, the middle income quintile spent 10% of their disposable income on energy, while the richest 20% spent only 5% of their income on energy.
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