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Residential Electricity Consumption and Adaptation to Climate Change by Colombian Households

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  • McRae, Shaun D.

Abstract

This paper provides the first empirical estimates of the relationship between temperatures and household electricity consumption in Colombia, using electricity billing and weather data from 2010 to 2019. I find that higher temperatures (or higher values of the heat index) increase electricity consumption, with the largest effects observed for high-income households in regions with hot climates. However, I show that there has been partial convergence between low- and high-income households, with the effect of temperature on electricity consumption in lower-income neighborhoods more than doubling between 2011 and 2019. These results align with survey evidence of increased air conditioning adoption. Nevertheless, further growth in air conditioning adoption and use is required to alleviate the health effects of more frequent and severe heatwaves due to climate change.

Suggested Citation

  • McRae, Shaun D., 2023. "Residential Electricity Consumption and Adaptation to Climate Change by Colombian Households," IDB Publications (Working Papers) 12968, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:12968
    DOI: http://dx.doi.org/10.18235/0005017
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    More about this item

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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