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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)

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

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Length: 16 pages
Date of creation: 2007
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Handle: RePEc:ven:wpaper:2007_06

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

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Find related papers by JEL classification:
L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Michael Parti & Cynthia Parti, 1980. "The Total and Appliance-Specific Conditional Demand for Electricity in the Household Sector," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 309-321, Spring. [Downloadable!] (restricted)
  3. Roberto Roson & Francesco Bosello & Marco Lazzarin & Richard S.J. Tol, 2004. "Economy-Wide Estimates of the Implications of Climate Change: Sea Level Rise," Working Papers 2004.96, Fondazione Eni Enrico Mattei. [Downloadable!]
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  4. Henley, Andrew & Peirson, John, 1997. "Non-linearities in Electricity Demand and Temperature: Parametric versus Non-parametric Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(1), pages 149-62, February.
  5. Anne Morrison Piehl & Suzanne J. Cooper & Anthony A. Braga & David M. Kennedy, 2003. "Testing for Structural Breaks in the Evaluation of Programs," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 550-558, 09. [Downloadable!] (restricted)
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  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.
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  7. Madlener, Reinhard & Alt, Raimund, 1996. "Residential Energy Demand Analysis: An Empirical Application of the Closure Test Principle," Empirical Economics, Springer, vol. 21(2), pages 203-20.
  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. [Downloadable!]
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  9. 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. [Downloadable!] (restricted)
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  10. Andrea Bigano & Francesco Bosello & Giuseppe Marano, 2006. "Energy Demand and Temperature: A Dynamic Panel Analysis," Working Papers 2006.112, Fondazione Eni Enrico Mattei. [Downloadable!]
  11. 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), Department of Economics Discussion Papers (SEEDS) 114, Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey. [Downloadable!]
  12. Robert S. Pindyck, 2006. "Uncertainty in Environmental Economics," Working Papers 0617, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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  13. Henley, Andrew & Peirson, John, 1998. "Residential energy demand and the interaction of price and temperature: British experimental evidence," Energy Economics, Elsevier, vol. 20(2), pages 157-171, April. [Downloadable!] (restricted)
  14. Fiebig, Denzil G. & Seale, James & Theil, Henri, 1987. "The demand for energy : Evidence from a cross-country demand system," Energy Economics, Elsevier, vol. 9(3), pages 149-153, July. [Downloadable!] (restricted)
  15. Donald H. Rosenthal & Howard K. Gruenspecht & Emily A. Moran, 1995. "Effects of Global Warming on Energy Use for Space Heating and Cooling in the United States," The Energy Journal, International Association for Energy Economics, vol. 16(2), pages 77-96.
  16. Maria Berrittella & Andrea Bigano & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis Of Climate Change Impacts On Tourism," Working Papers FNU-49, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004. [Downloadable!]
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  17. Francesco Bosello & Jian Zhang, 2005. "Assessing Climate Change Impacts: Agriculture," Working Papers 2005.94, Fondazione Eni Enrico Mattei. [Downloadable!]
  18. Gang Liu, 2004. "Estimating Energy Demand Elasticities for OECD Countries. A Dynamic Panel Data Approach," Discussion Papers 373, Research Department of Statistics Norway. [Downloadable!]
  19. 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. [Downloadable!] (restricted)
  20. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January. [Downloadable!] (restricted)
  21. Anderson, T. W. & Hsiao, Cheng., 1980. "Estimation of Dynamic Models with Error Components," Working Papers 336, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fabio Eboli & Ramiro Parrado & Roberto Roson, 2009. "Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model," Working Papers 2009.43, Fondazione Eni Enrico Mattei. [Downloadable!]
  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 2007.71, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
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