Household Transportation Energy Affordability by Region and Socioeconomic Factors

Abstract

Transportation fuel is an important component of household budgets, as 3.3% of total household expenditures are for vehicle fuel nationwide and over 50% of annual household expenditures on energy are for transportation. These average values vary geographically, and higher energy cost burdens are faced by households with lower incomes. Defining transportation energy affordability burden as the percentage of annual household income spent on vehicle fuel, this study aims to quantify affordability as a function of household characteristics and geography. Through analysis at the census tract level, this study (i) projects annual household vehicle miles traveled (VMT) based on demographic factors using machine-learning techniques, (ii) estimates local differences in vehicle fuel economy and fuel price, and (iii) quantifies resulting transportation energy affordability by census tract. This study found that the average burden by tract varies from 0.15% to 8%. The variation in affordability can be largely explained by income level and vehicle fuel efficiency. Suburban and rural households spend more on transportation energy compared with urban households because of the usage of less fuel-efficient vehicle technologies and higher annual VMT. Lower-income groups have a wide distribution of the percentage of income spent on transportation energy, 1.2% to 8%, whereas the range for the highest income group ($125,000+) is from 0.15% to 3.9%. This detailed transportation energy affordability analysis provides a better understanding of regional variations in household travel behavior, helps to determine where fuel-efficient vehicle technologies are more likely to be used, and improves estimates of vehicle ownership costs.