WalletHub Study: 2015’s Most and Least Energy Efficient States
It’s on everyone’s minds. Are we energy efficient? Are we doing everything we can to make the environment a better place? Most people will try to conserve energy if they know how. That’s why we wanted to feature this recent WalletHub study.
To bring awareness to the impact of energy on Americans’ wallets and encourage consumers to conserve more, WalletHub compared the efficiency of car- and home-energy consumption in 48 U.S. states. Energy is expensive. It’s one of the biggest household expenses for American consumers, who, on average, spend nearly $2,000 a year on energy bills, nearly half of which pays just for heating and cooling expenses.
To identify the most energy-efficient states, WalletHub analyzed data for 48 states based on two key dimensions, including “home-energy efficiency” and “car-energy efficiency.” They obtained the former by calculating the ratio between the total residential energy consumption and annual degree days. For the latter, they divided the annual vehicle miles driven by gallons of gasoline consumed. Each dimension was weighted proportionally to reflect national consumption patterns.
In order to obtain the final ranking, they attributed a score between 0 and 100 to correspond with the value of each dimension. They then calculated the weighted sum of the scores and used the overall score to rank the states. Together, the points attributed to the two major categories add up to 100 points.
Home-Energy Efficiency – Total Points: 55
- Home-Energy Efficiency = Total Residential Energy Consumption per Capita / Degree-Days
Car-Energy Efficiency – Total Points: 45
- Car-Energy Efficiency = Annual Vehicle Miles Driven / Gallons of Gasoline Consumed
Sources: Data used to create these rankings were obtained from the U.S. Census Bureau, the National Climatic Data Center, the U.S. Energy Information Administration and the Federal Highway Administration.
Due to data limitations, Alaska and Hawaii were excluded from their analysis.
|Most Energy-Efficient States||Least Energy-Efficient States|
Here is the break down of the most and lease energy expensive states:
- Utah’s weather-adjusted home-energy consumption is twice as efficient as Louisiana’s.
- Florida’s car-energy consumption is twice as efficient as North Dakota’s.
Environmentally conscious practices can help prevent costly damage to the planet — and one’s wallet. To help consumers and governments find ways of reducing their consumption and maximizing their savings, WalletHub asked a panel of experts to weigh in on the discussion with the following key questions:
- What energy-efficient products for the home offer the best return on investment?
- What is the biggest mistake consumers make when trying to make their homes more energy-efficient?
- Should the government continue to incentivize consumers and businesses to invest in energy-efficient projects?
- What tips can you provide for building an energy-efficient home on a budget?
- What are the best strategies for financing solar panels for the home?
For the full report and to see where your state ranks, please visit: