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Economic and equity impacts of California electrification
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DOI：10.3389/fenrg.2026.1863000.png)
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Abstract
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California’s push for deep decarbonization has put building electrification at the center of its climate strategy; but the distribution of costs and benefits across households remains poorly understood. This study systematically reviews empirical; modeling; and policy analyses of ratepayer-funded electrification and energy efficiency programs in California; with a focus on economic feasibility; distributional impacts; and energy justice for low- and moderate-income households; renters; and disadvantaged communities. The review shows that the cost-effectiveness of electrification varies markedly across building types and customer segments; and that combining electrification with weatherization; targeted efficiency upgrades; and income-based rebates substantially improves affordability for vulnerable households. At the same time; prevailing rate structures; building codes; and program eligibility criteria often create regressive cost burdens and skew participation toward wealthier homeowners; leaving renters and disadvantaged neighborhoods persistently underserved. Evidence on innovative; justice-cognizant tariffs and equity frameworks indicates that granular pricing and explicit distributional metrics can reduce energy burdens when paired with safeguards against cost shifting and barriers to clean technology adoption. Taken together; these findings highlight enduring trade-offs between decarbonization and equity; and offer actionable guidance for regulators; utilities; and community organizations seeking to align California’s building electrification agenda with energy justice and community resilience goals.
Keywords:
environmental justice (EJ)
building electrification
electricity tariff design
energy equity
ratepayer-funded programs
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