The non-linear link between electricity consumption and temperature in Europe: A threshold panel approach
AbstractThis paper investigates the relationship between electricity demand and temperature in the European Union. We address this issue by means of a panel threshold regression model on 15 European countries over the last two decades. Our results confirm the non-linearity of the link between electricity consumption and temperature found in more limited geographical areas in previous studies. By distinguishing between North and South countries, we also find that this non-linear pattern is more pronounced in the warm countries. Finally, rolling regressions show that the sensitivity of electricity consumption to temperature in summer has increased in the recent period.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 30 (2008)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/locate/eneco
Other versions of this item:
- Fouquau, Julien & Bessec, Marie, 2008. "The Non-Linear Link between Electricity Consumption and Temperature in Europe : A Threshold Panel Approach," Economics Papers from University Paris Dauphine 123456789/8180, Paris Dauphine University.
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
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