Transportation Energy Affordability

Affordability of Household Transportation Fuel Costs By Region and Socioeconomic Factors

Transportation energy is an important component of household budgets. Household vehicle fuel, one part of total transportation energy costs is over 3% of total household expenditures nationwide in the U.S. The average annual expenditure of over $2,000 for vehicle fuel (mostly gasoline) is comparable to the total average household expenditures for electricity and natural gas combined. However, these average values vary geographically, and lower income households can face higher energy cost burdens.

This study quantifies household transportation energy affordability in terms of the transportation energy burden, defined as the percentage of annual household income spent on the household vehicle fuel costs.

In addition to being a large household expenditure, fuel costs are also the most volatile cost component of total household transportation expenditures. Household transportation energy burden depends on the annual vehicle miles traveled (VMT), fuel price, and vehicle fuel efficiency.