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The Impact of Temperature Change on Energy Demand a Dynamic Panel Analysis

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Author Info

  • Roberto Roson

    ()
    (Department of Economics, University Of Venice Cà Foscari)

  • Enrica de Cian

    (FEEM
    Department of Economics, University Of Venice Cà Foscari)

  • Elisa Lanzi

    (FEEM)

Abstract

This paper presents an empirical study of energy demand, in which demand for a series of energy goods (Gas, Oil Products, Coal, Electricity) is expressed as a function of various factors, including temperature. Parameter values are estimated econometrically, using a dynamic panel data approach. Unlike previous studies in this field, the data sample has a global coverage, and special emphasis is given to the dynamic nature of demand, as well as to interactions between income levels and sensitivity to temperature variations. These features make the model results especially valuable in the analysis of climate change impacts. Results are interpreted in terms of derived demand for heating and cooling. Non-linearities and discontinuities emerge, making necessary to distinguish between different countries, seasons, and energy sources. Short- and long-run temperature elasticities of demand are estimated.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2007/WP_DSE_DeCian_Lanzi_Roson_04_07.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2007_06.

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Length: 16 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:ven:wpaper:2007_04

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Keywords: Advertising; Media Industries; Broadcasting; Price Discrimination; Television; Radio; Differentiation..;

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References

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  1. Moral-Carcedo, Julian & Vicens-Otero, Jose, 2005. "Modelling the non-linear response of Spanish electricity demand to temperature variations," Energy Economics, Elsevier, vol. 27(3), pages 477-494, May.
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  4. Robert S. Pindyck, 2006. "Uncertainty in Environmental Economics," Working Papers 0617, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
  5. Bosello, Francesco & Roson, Roberto & Tol, Richard S.J., 2006. "Economy-wide estimates of the implications of climate change: Human health," Ecological Economics, Elsevier, vol. 58(3), pages 579-591, June.
  6. Roberto Roson & Calzadilla Alvaro & Pauli Francesco, 2005. "Climate Change and Extreme Events: an Assessment of Economic Implications," Computing in Economics and Finance 2005 49, Society for Computational Economics.
  7. Andrea Bigano & Maria Berrittella & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis of Climate Change Impacts on Tourism," Working Papers 2004.127, Fondazione Eni Enrico Mattei.
  8. Henley, A & Peirson , J, 1996. "Energy Pricing and Temperature Interaction: British Experimental Evidence," Working Papers 96-16, University of Wales, Aberystwyth, Department of Economics.
  9. Francesco Bosello & Jian Zhang, 2005. "Assessing Climate Change Impacts: Agriculture," Working Papers 2005.94, Fondazione Eni Enrico Mattei.
  10. Francesco Bosello & Roberto Roson & Richard Tol, 2007. "Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(3), pages 549-571, July.
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  12. Arqam Al-Rabbaie & Lester C. Hunt, 2006. "OECD Energy Demand: Modelling Underlying Energy Demand Trends using the Structural Time Series Model," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 114, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
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Citations

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Cited by:
  1. Dominique van der Mensbrugghe, 2010. "Climate Change and Economic Growth: Impacts and Interactions," Working Papers 2010_07, Department of Economics, University of Venice "Ca' Foscari".
  2. Roberto Roson & Francesco Bosello & Enrica De Cian, 2007. "Climate Change, Energy Demand and Market Power in a General Equilibrium Model of the World Economy," Working Papers 2007_09, Department of Economics, University of Venice "Ca' Foscari".
  3. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(05), pages 515-533, October.
  4. Foster, John & Bell, William Paul & Wild, Phillip & Sharma, Deepak & Sandu, Suwin & Froome, Craig & Wagner, Liam & Misra, Suchi & Bagia, Ravindra, 2013. "Analysis of institutional adaptability to redress electricity infrastructure vulnerability due to climate change," MPRA Paper 47787, University Library of Munich, Germany.
  5. 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.
  6. Bosello, Francesco & Eboli, Fabio & Parrado, Ramiro & Nunes, Paulo A.L.D. & Ding, Helen & Rosa, Renato, 2011. "The economic assessment of changes in ecosystem services: and application of the CGE methodology," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 11(1).
  7. Mideksa, Torben K. & Kallbekken, Steffen, 2010. "The impact of climate change on the electricity market: A review," Energy Policy, Elsevier, vol. 38(7), pages 3579-3585, July.
  8. John Foster & William Paul Bell & Craig Froome & Phil Wild & Liam Wagner & Deepak Sharma & Suwin Sandu & Suchi Misra & Ravindra Bagia, 2012. "Institutional adaptability to redress electricity infrastructure vulnerability due to climate change," Energy Economics and Management Group Working Papers 7-2012, School of Economics, University of Queensland, Australia.

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