Carbon-Based Energy Sources Continue to Dominate Michigan’s Energy Consumption

In the State of Michigan, petroleum is the most highly consumed form of energy, according to the U.S. Energy Information Administration (EIA). In 2016, 881.4 trillion British Thermal Units (BTU)s of petroleum were consumed in the State of Michigan. This number represents a continued increase of usage since 2012, when it was reported that 787.2 trillion BTUs were consumed. Prior to 2012, use of petroleum remained steady between 2000 and 2005 at about 990 trillion BTUs and then began to drop to the 2012 consumption low point. In the context of this post, petroleum represents the use of motor gasoline, distillate fuel oil, residual fuel and jet fuel. The pattern of decline, then resurgence, is one that follows the economic fortunes of the state with the Great Recession followed by a slow climb out of recession since about 2012.

In the State of Michigan, petroleum is the most highly consumed form of energy, according to the U.S. Energy Information Administration (EIA). In 2016, 881.4 trillion British Thermal Units (BTU)s of petroleum were consumed in the State of Michigan. This number represents a continued increase of usage since 2012, when it was reported that 787.2 trillion BTUs were consumed. Prior to 2012, use of petroleum remained steady between 2000 and 2005 at about 990 trillion BTUs and then began to drop to the 2012 consumption low point. In the context of this post, petroleum represents the use of motor gasoline, distillate fuel oil, residual fuel and jet fuel. The pattern of decline, then resurgence is one that follows the economic fortunes of the state with the Great Recession followed by a slow climb out of recession since about 2012.

Next to petroleum, natural gas was the most commonly consumed energy source. In 2016, 675.9 trillion BTUs were consumed in the State of Michigan. This is a decrease from 763.8 trillion BTUS is 2014 and a larger overall decrease of 854.8 trillion BTUs consumed in 2000, this form of energy remains the second most consumed in the State of Michigan. This is not surprising though, as most of the energy produced in Michigan is natural gas. Here though we are discussing consumption.

The consumption of renewable energy sources in Michigan has steadily increased since 2000, with 208.7 trillion BTUs being consumed in 2016. In 2000, 118.4 trillion BTUs of renewable energy was consumed in Michigan.

The type of renewable energy sources consumed in Michigan include solar, wind, hydroelectric, biomass and geothermal energy sources. Wood and waste biomass and wind energy are the type of renewable energy sources consumed the most in Michigan.

Of the renewable energy sources consumed in Michigan, biomass has the highest consumption rate at 85.6 trillion BTUs in 2016, according to the EIA. Biomass includes organic matter such as wood or crop waste. Consumption of biomass as an energy source has been increasing since 2000 when the consumption was 68.9 trillion BTUs.

The consumption of geothermal as an energy source steadily increased from 2000 to 2011, (from 1.2 trillion BTUs to 5.1 trillion BTUs) and has since leveled off, with 5.2 trillion BTUs being consumed in 2016.

Solar and hydroelectric are the lowest consumed renewable energy sources in Michigan. According to the EIA, 1 trillion BTUs of solar energy consumed in Michigan in 2016; this is an increase from the 0.2 trillion BTUs consumed in 2000. The consumption of hydroelectric energy has yet to reach 1 trillion BTUs. In 2000 0.3 trillion BTUs was consumed and in 2016 0.2 trillion BTUs was consumed. These numbers fluctuated between those time frames though, with the highest consumption of hydroelectric energy being in 2003 at 0.8 trillion BTUs. Overall renewables represent a very small, though slightly increasing proportion of energy consumed.

In 2008 Michigan enacted a renewable energy standard that required the state retail electricity providers, such as DTE, to generate at least 10 percent of their energy sources from renewable energy; that requirement has since been increased to 12.5 percent to be met by 2019. According to DTE, their current residential electric fuel mix is made up of 9.8 percent renewable energy sources. In a future post we hope to further explore the electric fuel mix percentages; we are currently inquiring about time series data.

Overall, we see that consumption of carbon-based energy sources such as coal and petroleum have been decreasing over time, while the consumption of renewable energy sources has been increasing at a slow rate. The data presented here tend to indicate that carbon dioxide producing fossil fuels are likely to continue to dominate energy consumption for many decades, unless Michigan policy makers act on the dangers of climate change to the state’s future environment, economy and children.

 

Metro-Detroit Sees Lower Unemployment Rates

  • The State and City of Detroit’s unemployment rates decreased at the monthly levels;
  • Regionally, September 2018 unemployment rates are lower than the prior year;
  • Housing prices continue to rise in Metro-Detroit.

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for September of 2017 and 2018. In September of 2018 Wayne County had the highest unemployment rate at 4.5, with St. Clair County having the second highest regional unemployment rate 3.9. Livingston and Washtenaw counties were the only two in the region with unemployment rates below 3 in September of 2018. The unemployment rate for Livingston County was 2.9, and the unemployment rate for Washtenaw County was 2.8.

When comparing 2017 and 2018, every county in the region experienced a decline in the unemployment rate. Monroe County experienced the largest decline, with the September 2017 unemployment rate being 5.5 and the September 2018 unemployment rate being 3.6.

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for September of 2017 and 2018. In September of 2018 Wayne County had the highest unemployment rate at 4.5, with St. Clair County having the second highest regional unemployment rate 3.9. Livingston and Washtenaw counties were the only two in the region with unemployment rates below 3 in September of 2018. The unemployment rate for Livingston County was 2.9, and the unemployment rate for Washtenaw County was 2.8.

When comparing 2017 and 2018, every county in the region experienced a decline in the unemployment rate. Monroe County experienced the largest decline, with the September 2017 unemployment rate being 5.5 and the September 2018 unemployment rate being 3.6.

The above chart shows the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $124,770 in August 2018; this was $530 higher than the average family dwelling price in July. The August 2018 price was an increase of $7,010 from August of 2017 and an increase of $15,110 from August of 2016, an increase of $21,020 from August of 2016 and increase of $26,050 from August of 2014.

Turkeys, Chickens and Ducks

As Thanksgiving approaches it is worth noting that our state has had a great success in expanding wild turkey populations across the state from near extinction in 1900 to over 200,000 birds across the state nowadays. All but the most densely populated areas of Southeastern Michigan have wild turkeys. And now they will find many cities are allowing their domesticated cousins—chickens. And at least one has added ducks.

Across Southeastern Michigan there are 30 communities that allow for residents to house chickens on their property, according to recent research conducted by the Detroit Free Press. These communities have various ways of allowing residents to have the chickens on their property. For example, in the City of Warren residents are allowed to have three hens and pay a $10 registration fee to have the chickens. In the City of Berkley though restrictions are bit tighter, with only five permits available for residents to have backyard chickens.

It is within the purview of each community as to whether or not they want to allow backyard chickens and to what extent they will be allowed. This local control comes from a rule the Michigan Agriculture Commission adopted in 2014 that essentially states not everyone can claim rights under the Right to Farm Act. The rule is intended to protect the overall goal of the Right to Farm Act, which is to protect industrial sized farmers in rural communities. The local control aspect of backyard livestock and poultry allows more suburban and urban communities to decide what is best for their community and residents. As noted above some communities only allow a certain number of permits to be distributed, while others require a fee to be paid, and only a certain number of hens to be owned by an individual. While there are 30 communities in Southeastern Michigan that allow residents to own chickens, there are 21 that have banned them. Ann Arbor recently added ducks to the list of animals backyard farmers can cultivate.

Reasons individuals want to house chickens in their backyard typically links back to wanting the chicken’s eggs. Hens can lay up to five eggs per week. Reasons communities cite for wanting to ban them include the allegation that the chickens, and their feed, may attract rats and that the hens themselves may be a noise nuisance.

Population Shifts Reflect Aftermath of Economic Distress, Change

Last week we examined the density of the various racial, ethnic and ancestral backgrounds in Southeastern Michigan and this week we further explore how those populations have grown or declined, regionally between 2010 and 2016. One of the fascinating results of this analysis is that it demonstrates a clear reversal in the long term trend for Caucasian population to exit Detroit. This has reversed with substantial increases in the percentage of whites in some inner city areas of Detroit. We see a similar trend in Pontiac in Oakland County. As the first map below shows, population growth above 51 percent or more occurred in the Downtown Detroit, Midtown, West Village, New Center, Boston Edison, Corktown and Palmer Park areas of Detroit. These areas have been popular areas of redevelopment in recent years. Another possible reason for this growth is that homes in Detroit, for example, cost far less than other areas of the metropolitan area, and this makes renting or home ownership feasible when it might not be, after losses of income due to the decline of industry and the job market. One note of caution—the big increases for whites occur with respect to very small base populations. So, big increases might not mean that many people.

As the second map shows, most of Detroit experienced a loss of the African American population between 2010 and 2016. While Detroit experienced a loss of the African American population, there were increases of this population in areas such as Warren, Eastpointe, Dearborn and several outer-ring suburbs. This represents a continuation of a decades long migration outward from Detroit. As job markets integrate, it may be rational for African Americans to seek to be closer to job locations in the suburbs, where, after all, job growth has been higher than in Detroit.

The same forces are in play for the Latinx population. There were also population increases above 51 percent for those of Hispanic or Latinx descent in the region’s outer-ring suburbs, as the third map below shows.

For the Arab ancestry map (the fourth map), we see that there are several areas in the region, including in much of Detroit, where this population is minimal or not present. Where it was present in Detroit, it has been rapidly declining. Conversely, the Arab ancestral population’s growth is expanding in areas of western Macomb and both the eastern and western portion of the southern half of Oakland County.

Overall these maps remind us that population changes that have been steady for decades can change in unexpected ways in just a very few years, especially after a decade of economic distress and change.

Detroit’s Ex-Urban Areas Lack Diversity, Density

The purpose of this post is to show the population density of race, ethnicity and ancestry throughout Macomb, Oakland and Wayne counties. Each dot in the maps represents 500 people and the race, ethnicity or ancestry of that concentration. The groups represented on the maps are those of Arab ancestry, Hispanic or Latino ethnicity, non-Hispanic black or African American and non-Hispanic white or Caucasian. As shown in the first map, there are various concentrations of each throughout Southeastern Michigan, with those of non-Hispanic black or African American and non-Hispanic white or Caucasian being the most prominent across the region.

A deeper look at the map, and the individual maps, shows that the Caucasian population has the broadest distribution across in the region, with the highest concentrations in Detroit’s northern suburbs (See Below). The only truly notable absence of the Caucasian population in the map below is in Highland Park and in some areas of Detroit.

The group with the next highest population distribution is the African American population, with the largest concentration being in the City of Detroit. Other areas with high-density African American populations are the southern areas of the inner-ring suburbs of Detroit, Southfield, and Inkster, with increasing density in some down river communities and southern Macomb County, especially Warren. Additionally, as can be seen in the map below, Pontiac also is one of the higher density areas with an African American population.

When looking at the first map above, attention is also drawn to the Southwest portion of Detroit, where there is the highest density of the Hispanic or Latino ethnicity in the region. Allen Park, Lincoln Park and Melvindale also have a higher density of the Hispanic or Latino ethnicity in the region. The individual map also shows that there is also some concentration of the Hispanic or Latino population in Pontiac.

 

The final group examined in this post is those of Arab ancestry, and the highest density of this group is in eastern area of Dearborn and in Hamtramck. Dearborn Heights also has among the highest density of those of Arab ancestry. As the Arab ancestry map shows though, western Macomb County, eastern Oakland County and some western Oakland County communities are also the areas of the Southeastern Michigan where those of Arab ancestry live.

As noted, the above maps highlight the population density of various racial, ethnic and ancestral groups in the region. The outlying suburban and ex-urban areas of the region have much lower population density, along with far lower diversity.

Next week we will examine the how the percentage of each of these populations changed between 2010 and 2016.

 

 

Elderly Population Continues to Grow in Southeastern Michigan

While there are only 10 communities in Southeastern Michigan with more than 21 percent of the population 65 years of age or older, the number of communities with a growing elderly population is far greater than those with a declining elderly population. According to the data, majority of the rural communities throughout Southeastern Michigan-Monroe, Washtenaw, Livingston, St. Clair and northern Macomb and Oakland counties-have seen the greatest increases in a growing elderly population. Overall, St. Clair County’s elderly population grew the most between 2010 and 2016, with nine of the communities experiencing between 6 and 13 percent increases in the 65 years of age and older population. In St. Clair County, Algonac (21%), China Township (22%) and East China Township (26%) had the highest percentage of elderly residents in 2016. However, it was Lake Angelus, in northern Oakland County, that had the highest percentage of resident 65 years of age or older at 35 percent.

Detroit, and its inner and outer ring suburbs have the highest concentration of the aging population that is growing at a slower rate. As the second map below shows, majority of the Detroit suburbs did not experience a growth of the 65 years of age and older population above 2.5 percent between 2010 and 2016. In fact, some of those communities (Hamtramck, Grosse Pointe, Redford, Dearborn Heights) experienced an overall decline in the 65 years of age and older population between 2010 and 2016. In Detroit, the 65 years of age and older population only grew by 1.6 percent between 2010 and 2016. According to the data, in 2010 the elderly population was at 11 percent and by 2016 it grew to 12.6 percent. In Hamtramck, the 65 years of age population decreased from 9.1 percent in 2010 to 7.8 percent in 2016.

According to a recent Detroit Free Press article, by 2025 the number of people above the age of 65 will outnumber those 17 and younger. Nationally, such a growth of the elderly population isn’t expected to occur until 2035. There are varying reasons for the growth of the 65 years of age and older population locally, and nationally, including better medical advancements allowing people to live longer and the decline in birth rates over the year. One reason for what appears to be the quicker growth of the aging population in Michigan though is the fact that over about the last decade, particularly during the Great Recession, people have left to find jobs elsewhere. So, in short, out-migration has contributed to the fact that Michigan’s elderly population will outnumber its younger population within the next decade.

Detroit’s HIV Rates Highest in the Region

The City of Detroit had the highest HIV rate per 100,000 people in the Metro-Detroit region, according to the most recent data released by the Michigan Department of Health and Human Services. The rate per 100,000 people as of January 2018 was 718. Regionally, Wayne County (excluding the City of Detroit) had the second highest rate per 100,000 people at 190. Livingston County had the lowest rate in the region at 54 per 100,000 people. While there is no single reason as to why Detroit has such a high HIV rate (more than four times that of the State’s average rate) there is belief among experts, according to a recent Detroit Free Press article, that it is tied to socioeconomic factors like poverty, health care access and transportation for health care access. In Detroit, according to the most recent Census data, 57 percent of the population has public health insurance coverage and 15 percent has no health insurance. According to a recent Detroit Free Press article, the number of new people diagnosed with HIV cases Michigan has remained fairly stable since the early 2000s, but there has been an increase in the number of young African American gay and bisexual men who have been diagnosed in recent years. Additionally, of those diagnosed with HIV in the State of Michigan, about 51 percent are between the ages of 40-59 years old and 78 percent of Michigan’s population living with HIV are males.

While medical advancements are being made toward finding a cure for HIV, that has yet to occur. Rather, to control and prevent the virus from evolving into AIDS, those diagnosed need to carefully and consistently treat the disease. In Detroit, according to the Michigan Department of Health and Human Services, about 20 percent of the diagnosed HIV population goes without regular treatment. Reasons for this are not concrete but it can be speculated that it is related to income, access to health care and overall knowledge on the disease and its treatment. For example, the average lifetime cost for HIV treatment is estimated to be about $400,000 and the annual median income in Detroit is about $26,000. According to the Michigan Department of Health and Human Services those most likely to not receive consistent care in Michigan are: those between the ages of 20-29 (23 percent not receiving treatment), foreign-born individuals (32 percent), Hispanic males (25 percent) and those who inject drugs (23 percent).

 

Although the numbers show that those becoming infected with HIV remains a problem, funding at the State level has dropped over the years. In 2017 $19.4 million was allocated towards assisting those with HIV (medication, medical transportation and services). In Detroit, and throughout the region, there are several options for an individual to receive help. For more information, click here.

Building in Metro-Detroit Beginning to Slow

  • The State and City of Detroit’s unemployment rates decreased at the monthly and annual levels;
  • Regionally, August 2018 unemployment rates are lower than the prior year, with the exception of Macomb and Wayne counties;
  • Housing prices continue to rise in Metro-Detroit.
  • New building permits being pulled regionally decreasing

In August of 2018 the unemployment rate for the State of Michigan was 4.1, a small decrease from the July unemployment rate of 4.2, according to the most recent data provided by the Michigan Department of Technology, Management and Budget. The State unemployment rate for August of 2017 was 0.5 points above what it was in August of 2018.

The Detroit rate was 0.2 points lower in August of 2018 than in August of 2017. Also, the August 2018 unemployment rate for Detroit was 1.7 points lower than what it was the previous month (July 2017).

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for August of 2017 and 2018. In August of 2018 Wayne County had the highest unemployment rate at 5.3, with Monroe County having the second highest regional unemployment rate 4.5. These two counties were the only two in the region to have unemployment rates at or above 4.5 in August of 2018. Conversely, Oakland, Washtenaw and Livingston counties all had unemployment rates at or below 3.5 in August of 2018.

Regionally, Livingston County had the lowest unemployment rate in August of 2018 at 3. Livingston County also had the lowest unemployment rate in August of 2017 at 3.6 while Monroe County had the highest unemployment rate in August of 2017 at 5.7.

When comparing 2017 and 2018, Wayne and Macomb counties are the only two where the unemployment rate was higher in 2018 than in 2017. For Macomb County, in August of 2017 the unemployment rate was 3.9 and for 2018 it was 3.8. For Wayne County there was also a 1.0 difference, from 4.3 in 2017 up to 5.3 in 2018.

The above chart shows the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $124,240 in July 2018; this was $510 higher than the average family dwelling price in June. The July 2018 price was an increase of $7,160 from July of 2017 and an increase of $15,070 from July of 2016, an increase of $20,900 from July of 2016 and increase of $26,110 from July of 2014.

While home prices have been growing in Southeastern Michigan, a recent Detroit News article detailed how construction is slowing down, largely in part due to land and labor shortages and the associated costs. Also according to the article, August housing permits for single-family home construction decreased by 1.8 percent statewide compared to this time last year. This 1.8 percent increase was nearly the same as it was at this time last year (from 2016 to 2017), but for 2016 that annual increase was about 10 percent, according to the article.

The chart below highlights how around 2011 the number of single family home building permits issued in each county in the region began to increase, spiking in about 2013. Then, more recently, Oakland, Wayne, Monroe and St. Clair counties experienced another increase in the number of permits pulled in 2017. However, the 2018 numbers, which are not complete for the year, do indicate that year end numbers will not compare with 2017. With only three months left in the year, and construction season slowing down for winter, it is likely many, if not all the counties in the region will not increase the annual number of building permits pulled over 2017.

Despite some regional housing growth, the Detroit News article indicated that affordable single family homes, particularly ones geared toward first-time buyers, are lacking in inventory in the region.

Wayne County Has Highest Average Payment for Food Stamps

In Southeastern Michigan, Wayne County had both the highest average payment per person for the state’s food assistance program and the highest number of both adult recipients and child recipients, according to 2018 from the Michigan Department of Health and Human Services. The Michigan Food Assistance Program is a temporary food assistance program for eligible low-income families and individuals; the program is administered through the U.S. Department of Agriculture. At the federal level this program is referred to as the Supplemental Nutrition Assistance Program (SNAP).

According to the data, thus far in 2018 Wayne County had 244,821 adult recipients of the state’s food assistance program and 178,744 child recipients. Wayne County also had the highest average food assistance payment per person at $132. Macomb County had the second highest number of recipients in 2018, according to the data. In 2018 Macomb had 62,109 adult recipients and 39,179 child recipients. However, Macomb County did not have the second highest average food assistance payment per person. Rather, Oakland County had the second highest average payment at $124. Livingston County had the lowest total of both adult and child recipients (4,449 and 2,652 respectively) and the lowest average payment per person at $119. According to the Center on Budget and Policy Priorities, the average monthly Food Assistance Program payment to Michigan residents in fiscal year 2017 was $125; Wayne County was the only county in the region above this average. Average payments are based on how close to, or below, the poverty line an individual or family are. The higher poverty level of an individual or family means they will likely receive more funding for food assistance.

The maps below further demonstrate why Wayne County had the highest number of Food Assistance Program recipients. Despite the data below being from 2016 (the state did not have data at the municipal or Census tract level and the most recent data from the Census is from 2016), the first map below highlights how Detroit, Highland Park, Inkster, Ecorse and Lincoln Park all have more than 29 percent of the cities’ households receiving food assistance. Outside of the Wayne County, the only other communities with more than 29 percent of its households on the food assistance program were Pontiac in Oakland County and Port Huron in St. Clair County.

In 2016, 42 percent of residents were on the Food Assistance Program (also known as SNAP/Food Stamps) in Detroit, with the concentrations being along some of the City’s main corridors, including Gratiot and Grand River avenues. There were more than 30 Census tracts where between 58 and 83 percent of the families living there were on the state’s food assistance program; these Census tracts were spread throughout the City. On the other hand, there were only about a dozen Census tracts in the City where 22 percent of the families living there were on the food assistance program; these Census tracts were right along the Detroit River and on the City’s northwest side.

As the data in this post shows, the State’s food assistance program is used by thousands of families in the region. With the state’s new requirement that individuals on the food assistance program must work it will be interesting to see how and if the program numbers shift.

Public Transportation for Work Commute Underutilized in Southeastern Michigan

Throughout Southeastern Michigan public transportation to get to work is utilized by less than 2 percent of the population in almost every community, according to 2016 Census data. The only community in Southeastern Michigan where more than 11 percent the population utilizes public transportation to travel to work is Highland Park. According to the data, 17.5 percent of the Highland Park population utilized public transportation to travel to work in 2016. It should be noted that Highland Park also has the lowest median income and highest poverty levels in Southeastern Michigan. Additionally, Highland Park has both Detroit Department of Transportation (DDOT) and the Suburban Mobility Authority for Regional Transportation (SMART) stops in the city. Next to Highland Park, Detroit, Ann Arbor and Ypsilanti have the next highest public transportation usage rates for commuting to work, ranging from 5 to 11 percent. These areas also have access to dedicated public transportation systems. For example, in Detroit there is DDOT, which also collaborates with SMART, and in Ann Arbor there is the Ann Arbor Area Transportation Authority.

While there are dedicated public transportation systems throughout Southeastern Michigan, they do not service all of the region. This fact is particularly showcased in the map above; nearly all of the green communities have no or limited access to public transportation. In some areas, like throughout much of Monroe, St. Clair, Livingston and Washtenaw counties, there are no sources of public transportation even offered to community members. While in Wayne, Oakland and Macomb counties access to public transportation is offered, but communities must vote on whether or not to support and utilize the services, such as with the SMART votes (how this service works is detailed here).

Understanding the region’s transit system, or lack there of, is important when reading about the usage of public transportation. When viewing just the numbers it could easily be argued a regional transit system isn’t needed because of the low percentage of users. However, further knowledge on public transportation in Southeastern Michigan shows that there is actually a lack of access, connectivity and education on the economic and community benefits related to public transportation.