Energy-efficiency standards may exacerbate inequalities
In Short
Authorities are cautious about implementing energy-efficiency standards across supply chains and end-user products, due to concerns that it could result in higher prices for consumers across all income levels.
A Few Details
The implementation of energy-efficiency regulations requires careful consideration, as they may disproportionately raise the cost of end-user products. Research shows that low-income households, which allocate a larger percentage of their budget to energy consumption[1], would be more adversely affected by these price increases, while wealthier households could more readily absorb the additional costs.
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