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The impact of daylight saving time on electricity consumption: Evidence from southern Norway and Sweden

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  • Mirza, Faisal Mehmood
  • Bergland, Olvar

Abstract

This paper examines the impact of daylight saving time (DST) on electricity consumption in southern Norway and Sweden. As DST was implemented in both the countries in 1980, we do not have a clear counterfactual in the form of a control period to identify the impact of DST directly with before and after or with and without analysis. This problem in the study is resolved by using "equivalent day normalization technique" to identify the impact of DST. The difference-in-difference (DID) average treatment effects model suggests an annual reduction of at least 1.0 percent in electricity consumption for both Norway and Sweden due to DST. The average annual electricity consumption reduction corresponding to DST effects equals 519 and 882Â GWh for southern Norway and Sweden, resulting in an annual financial saving of 16.1 million Euros and 30.1 million Euros, respectively. The distribution of treatment effects across different hours of the day indicates a small but significant reduction in electricity consumption during the morning and a steep decline during the evening hours in both countries.

Suggested Citation

  • Mirza, Faisal Mehmood & Bergland, Olvar, 2011. "The impact of daylight saving time on electricity consumption: Evidence from southern Norway and Sweden," Energy Policy, Elsevier, vol. 39(6), pages 3558-3571, June.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3558-3571
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    Cited by:

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    3. López, Miguel, 2020. "Daylight effect on the electricity demand in Spain and assessment of Daylight Saving Time policies," Energy Policy, Elsevier, vol. 140(C).
    4. Hugo Salas & Pedro Ignacio Hancevic, 2023. "The unexpected effects of daylight-saving time: Traffic accidents in Mexican municipalities," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 20(1), pages 1-29, Enero-Jun.
    5. Blake Shaffer, 2019. "Location matters: Daylight saving time and electricity demand," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1374-1400, November.
    6. Guven, Cahit & Yuan, Haishan & Zhang, Quanda & Aksakalli, Vural, 2021. "When does daylight saving time save electricity? Weather and air-conditioning," Energy Economics, Elsevier, vol. 98(C).
    7. Havranek, Tomas & Herman, Dominik & Irsova, Zuzana, 2016. "Does Daylight Saving Save Energy? A Meta-Analysis," MPRA Paper 74518, University Library of Munich, Germany.
    8. Tomas Havranek, Dominik Herman, and Zuzana Irsova, 2018. "Does Daylight Saving Save Electricity? A Meta-Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    9. Flores, Daniel & Luna, Edgar M., 2019. "An econometric evaluation of daylight saving time in Mexico," Energy, Elsevier, vol. 187(C).
    10. Shaffer, Blake, 2017. "Location matters: daylight saving time and electricity use," MPRA Paper 84053, University Library of Munich, Germany.
    11. Bircan, Çağatay & Wirsching, Elisa, 2023. "Daylight saving all year round? Evidence from a national experiment," Energy Economics, Elsevier, vol. 127(PB).
    12. Miguel López & Sergio Valero & Carlos Sans & Carolina Senabre, 2020. "Use of Available Daylight to Improve Short-Term Load Forecasting Accuracy," Energies, MDPI, vol. 14(1), pages 1-14, December.
    13. Nicholas Rivers, 2018. "Does Daylight Savings Time Save Energy? Evidence from Ontario," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 517-543, June.
    14. Choi, Seungmoon & Pellen, Alistair & Masson, Virginie, 2017. "How does daylight saving time affect electricity demand? An answer using aggregate data from a natural experiment in Western Australia," Energy Economics, Elsevier, vol. 66(C), pages 247-260.
    15. Hancevic, Pedro & Margulis, Diego, 2016. "Daylight saving time and energy consumption: The case of Argentina," MPRA Paper 80481, University Library of Munich, Germany.
    16. Humberto Verdejo & Emiliano Fucks Jara & Tomas Castillo & Cristhian Becker & Diego Vergara & Rafael Sebastian & Guillermo Guzmán & Francisco Tobar & Juan Zolezzi, 2023. "Analysis and Modeling of Residential Energy Consumption Profiles Using Device-Level Data: A Case Study of Homes Located in Santiago de Chile," Sustainability, MDPI, vol. 16(1), pages 1-32, December.
    17. Bergland, Olvar & Mirza, Faisal, 2017. "Latitudinal Effect on Energy Savings from Daylight Savings Time," Working Paper Series 08-2017, Norwegian University of Life Sciences, School of Economics and Business.

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