State residents view energy costs as long-term problem

Contact: AnnMarie Schneider, IPPSR, (517) 355-6672, annmarie@msu.edu; Larry Hembroff, IPPSR, (517) 353-1763, hembroff@msu.edu; or Geoff Koch, University Relations, (517) 432-0924, kochg@msu.edu

01/20/2006

EAST LANSING, Mich. – In 2005, the aftermath of the tsunami and Hurricane Katrina brought about dramatic though short-term spikes in energy prices. However, when asked in December, the vast majority of Michigan residents declared rising energy costs to be a decidedly long-term problem.

The problem is serious enough that many Michiganians are beginning to make changes in how they heat and cool their homes and in the distances they travel by car, according to the recent State of the State Survey by the Michigan State University Institute for Public Policy and Social Research.

“We have seen gas prices steadily rising with little recovery from the big price jumps that occur around national and international happenings related to weather and political events,” said Douglas B. Roberts, director of IPPSR. “People have had to readjust their monthly budgets to accommodate basic utilities and travel needs.”

According to the recent survey:

• 70.1 percent of Michigan residents are very concerned about the impact of rising energy costs on their monthly income; 23.5 percent are somewhat concerned.
• 86.3 percent recognize the rising cost of energy to be a long-term problem.

The data reveal only minor differences across demographics – gender, age, race, income and state region – of those participating in the study.

”It appears that we have found an issue that we all agree upon,” he said. “Energy costs are a long-term problem of concern.”

As a follow-up to this survey, the institute is hosting a Jan. 25 forum in downtown Lansing with energy researchers and policy experts. The forum, “Curbing Energy Costs in a Cold Weather, Commuter State,” is free and open to the public, though registration is required. Registration information is available at http://www.ippsr.msu.edu or by calling (517) 355-6672.

The current findings come from the institute’s most recent State of the State Survey, the quarterly effort to measure Michigan public opinion about the environment, health care, government institutions and a host of other issues. The survey was conducted by telephone interviews with 1,003 randomly selected Michigan adult residents. The overall margin of error is plus or minus 3.1 percent.

Additional findings reveal a Michigan citizenry that’s adapting to rising home heating and auto fuel costs.

Nearly half (46.4 percent) of Michigan residents are considering making changes to their homes, such as adding insulation or a more efficient heating system, as a way to keep energy costs down. And more than 42 percent said that, very often, they make decisions about where they do business, go shopping or go on vacation because of the cost of fuel, while 36 percent said they sometimes consider the cost of fuel before carrying out these activities.

“These findings reflect the general concern over rising energy costs and a few immediate approaches to managing the impact on personal budgets,” said AnnMarie Schneider, the institute’s program director. “In the longer term, we clearly need more investment in alternatives to our petroleum-based economy.”

A more detailed report of the survey results is available on the Web at http://www.ippsr.msu.edu/Documents/Forums/EnergySurvey.pdf.

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IPPSR is the nonpartisan public policy network at MSU. Housed within the College of Social Science, the institute is dedicated to connecting legislators, scholars and practitioners through survey, evaluation and applied research, policy forums and political leadership instruction.