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The Effect Of Development On The Climate Sensitivity Of Electricity Demand In India

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  • ESHITA GUPTA

    (Teri University, Plot No. 10, Institutional Area, Vasant Kunj, New Delhi, Delhi 110070, India)

Abstract

The climate sensitivity of electricity demand in India is likely to be highly sensitive to growth in income. Thus, both intensive and extensive adjustments in cooling and heating will play an important role in determining future climate change impacts on electricity demand. This paper utilizes a national level panel dataset of 28 Indian states for the period 2005–2009. The preferred estimates indicate that climate change will increase electricity demand by 6.7% with 4% p.a. GDP growth and 8.5% with 6% p.a. GDP growth in 2030 over the reference scenario of no climate change. This reflects the fact that the estimated marginal effect of a hotter climate is greater when income is higher. Over 50% of the climate change impacts will be due to extensive adjustments as the current penetration of space conditioning equipments such as air conditioners is very low.

Suggested Citation

  • Eshita Gupta, 2016. "The Effect Of Development On The Climate Sensitivity Of Electricity Demand In India," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-49, May.
    • Handle: RePEc:wsi:ccexxx:v:07:y:2016:i:02:n:s2010007816500032
    DOI: 10.1142/S2010007816500032
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    Cited by:

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    2. Harish, Santosh & Singh, Nishmeet & Tongia, Rahul, 2020. "Impact of temperature on electricity demand: Evidence from Delhi and Indian states," Energy Policy, Elsevier, vol. 140(C).
    3. Tamara Sofía Propato & Diego Abelleyra & María Semmartin & Santiago R. Verón, 2021. "Differential sensitivities of electricity consumption to global warming across regions of Argentina," Climatic Change, Springer, vol. 166(1), pages 1-18, May.
    4. Yuanzheng Li & Wenjing Wang & Yating Wang & Yashu Xin & Tian He & Guosong Zhao, 2020. "A Review of Studies Involving the Effects of Climate Change on the Energy Consumption for Building Heating and Cooling," IJERPH, MDPI, vol. 18(1), pages 1-18, December.
    5. Filippo Pavanello & Enrica Cian & Marinella Davide & Malcolm Mistry & Talita Cruz & Paula Bezerra & Dattakiran Jagu & Sebastian Renner & Roberto Schaeffer & André F. P. Lucena, 2021. "Air-conditioning and the adaptation cooling deficit in emerging economies," Nature Communications, Nature, vol. 12(1), pages 1-11, December.
    6. Du, Kerui & Yu, Ying & Wei, Chu, 2020. "Climatic impact on China's residential electricity consumption: Does the income level matter?," China Economic Review, Elsevier, vol. 63(C).

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