What fraction of your income goes for energy?

Denny

According to this, 7% of Canadians inocme goes for energy in various forms. That is supposed to be a record.

"The pain Canadians feel when they fill up at the gas pump or open their electricity or gas bills will only get worse as energy now consumes a record seven per cent of Canadian household spending, says a new report

..

Gasoline prices averaged just under $1.40 a litre across Canada on Wednesday, a record high. And they should move even higher as demand picks up during the summer driving season.

Meanwhile, natural gas prices and electricity prices have also risen, taking a bigger bite out of the average homeowner's pocket."

First off, it surprises me that this 7% is a record at all. Think back to things like the Great Depression, many people could not even afford coal.

Secondly, 7% is a small number for what amounts to the greatest servant any human generation has employed. Just 7% to keep warm in winter, cool in summer, get ourselves and all our stuff from pont A to point B, power all our communications infrastructure and assist so greatly in food production. Millions and millions of mechanical muscles in our factories, mines and mills.

7% is a real bargain, let's stop whining. Canada spends 10% of its GDP just for health care. We sure have a lot more to show for the measly 7% spent on energy.

RedStateGreen

Gross or net?
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Precipice · Tar Sands Joined: Mar 04, 2008 Posts: 39

7% may not sound like much I agree-but it's the relative income expenditure on energy that is important. The whole viability of the present (global, capitalistic endless growth) economy is built on the foundation of cheap energy, because cheaper energy means greater output per input efficiency in production and in consumption (especially the acquisition of goods and services for consumption). It also guarantees continued economic growth so long as it is sufficiently avaliable at low prices.

A bad analogy: the amount of blood in a human body might only make up a small percentage of total body mass, but even if that percentage decreased only slightly it could severely disrupt the whole bodily system (perhaps fatally).

The General Equilibrium effects have to be taken into consideration: if everyone starts spending 30-50% of income on energy, that's 30-50% of every person's income that is not going to consumption of other goods (esp luxuries) which has devestating implications for whole industries and sectors. At the household level, someone spending a large fraction of income on energy compared to before is bound to see a sharp decline in living standards.

smallpoxgirl · Moderator Joined: Nov 08, 2004 Posts: 6278

I that direct energy expenditures or total? The total is probably at least 5 times the direct. If 7% is total, then that's not bad at all.
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Revi · Fusion Joined: Apr 25, 2005 Posts: 3448 Location: Maine

I think we spend around 5% on energy, but we live in a cold state. We use half the energy we used to, but the cost of energy has more than doubled, so we're in the same place.

A lot of people around here are falling back, however.
Here are the changes we've made to use less energy: link

Click on the pics for an explanation.
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Denny

eastbay

About 4%... maybe 5% from NOV to MAR.
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wisconsin_cur · Moderator Joined: May 10, 2007 Posts: 3211

At this exact moment... 10% in the summer (April-August) because I work less and income is down.

In the winter (we heat with wood so our expenditure does not change much but I am making more because I work more overtime) it is 7%.

If I can get the new job to come through it will hover between 5-7% depending upon the availability of overtime. My daily commute will actually decrease by 75% but the pay will also be less
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smallpoxgirl · Moderator Joined: Nov 08, 2004 Posts: 6278

It's a hard question for me to answer. My home utilities and gasoline is maybe 3-4% of my net. I also travel for business a ton. I'm not sure how to count things like airfare and cab fare. I have an office, but the electricity there is included in the rent, so I don't really know how much it is.
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"So while you sit and whistle Dixie with your money and your power.
I can hear the flowers a-growin in the rubble of the towers.
I hear leaders quit their lying
I hear babies quit their crying.
I hear soldiers quit their dying, one and all." - OCMS

Denny

I forgot to put in my own estimate. It would work to about 8% of our combined net income.

mobil1

7% sounds about right.

We were paying about $6,000 per year for 2 cars gas and electric and heating oil a few years ago.

At current prices that would be about $8,000.

But I bought a Prius so gas cost is lower. But I commute to work now. But my wife is taking leave and she will drive less and we will make less.

But with current energy prices and the Prius and conservation and using electric heat and with our lower income, I think we will still be at 7% for 2008-2009.

skeptik

Quite small, I've never felt the need to work it out. Certainly rent (expensive here on the coast) and food&booze are my major outgoings- I do like to eat well! At my location on the Spanish Mediterranean coast the climate is comparatively mild. I have no central heating. Occasionally during the last winter I lit a log fire in the evening for a few hours- a couple of dozen Oak or Almond logs over the winter. I have no A/C . Cooling in summer consists of a couple of ceiling mounted fans and a tiny 16W tabletop. No TV and not many gadgets. iPod and 25 year old HiFi.

Small sub-counter fridge and automatic front loading washing machine, both less than one year old , good quality German models, Miele and Liebherr, top rating for energy efficiency. No tumble drier - not needed in the Spanish climate. Cooking is by bottled butane - the most common method in Spain. I've been using the same small size bottle for over a year @ €12 a bottle as of last October - burns noticeably hotter than methane! Some people also run central heating on bottled butane and for a family size house take delivery of one or two 6 foot high bottles per season. I think most of this butane comes from Russia and North Africa. Spain has very little domestic fossil fuel resource but is rapidly ramping up wind and solar energy.

My main means of transport is a 125cc motor scooter, as most round trips are >10Km. Costs 7 Euros to fill @ €1.30 a liter - gone up a lot in the last year! - for a 200+Km range. Also have a 50MPG (combined cycle figure, US gallons) diesel Citroen C3, 4 seater compact hatchback, but don't use it that often, maybe once or twice a week.

IslandCrow

After-tax about 8%, that includes all driving (I get some of it paid back by the company I work for). The break down is house 3,6% and car 4,4%.

However, what this doesn't show is that after buying the house I spent nearly 25% of the purchase price on energy improvements which works out at 70% of my after-tax income for a year (I made a huge bet that prices of energy would rise!). If I wrote off the expense over 10 years than I would be spending about 15% on energy. At current energy costs the savings made would pay for the investment in about 7 years!
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MrBill · Expert Joined: Sep 15, 2005 Posts: 5642 Location: Eurasia

I reduced my personal fuel expenditure to zero. Now I take taxis.
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kevincarter

Not much really as I live in Spain too. I'd say 50% of our energy expenses go to electricity and city gas and the other 50% goes to the the car and public transportation.

BUT, if I have to add car insurance, car taxes, driving taxes, public transport taxes, driving tickets (wrongly issued to me, of course!), insulation materials for my home and so on then the bill is a lot higher
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