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Development And The Impact Of Climate Change On Energy Demand: Evidence From Brazil

Author

Listed:
  • GUILHERME DEPAULA

    (Yale School of Forestry and Environmental Studies, 195 Prospect Street, New Haven, CT 06511, USA)

  • ROBERT MENDELSOHN

    (Yale School of Forestry and Environmental Studies, 195 Prospect Street, New Haven, CT 06511, USA)

Abstract

This paper investigates the effects of climate on residential electricity use for households from different income classes in Brazil. Using cross-sectional data, the study finds that the temperature elasticity of electricity consumption varies significantly across income classes. The temperature elasticity of low income households is not significantly different from zero but middle and high income families have a long run temperature elasticity of 0.8 and 1.6 respectively. As emerging low latitude countries develop and incomes rise, the welfare damages of warming in the energy sector will become substantial.

Suggested Citation

  • Guilherme Depaula & Robert Mendelsohn, 2010. "Development And The Impact Of Climate Change On Energy Demand: Evidence From Brazil," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 187-208.
    • Handle: RePEc:wsi:ccexxx:v:01:y:2010:i:03:n:s2010007810000157
    DOI: 10.1142/S2010007810000157
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    References listed on IDEAS

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    1. Robert Mendelsohn (ed.), 2001. "Global Warming and the American Economy," Books, Edward Elgar Publishing, number 2304.
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    Cited by:

    1. Cabral, Joilson de Assis & Freitas Cabral, Maria Viviana de & Pereira Júnior, Amaro Olímpio, 2020. "Elasticity estimation and forecasting: An analysis of residential electricity demand in Brazil," Utilities Policy, Elsevier, vol. 66(C).
    2. Randazzo, Teresa & De Cian, Enrica & Mistry, Malcolm N., 2020. "Air conditioning and electricity expenditure: The role of climate in temperate countries," Economic Modelling, Elsevier, vol. 90(C), pages 273-287.
    3. Peter A. Lang & Kenneth B. Gregory, 2019. "Economic Impact of Energy Consumption Change Caused by Global Warming," Energies, MDPI, vol. 12(18), pages 1-29, September.
    4. Eshita Gupta, 2014. "The Effect of development on the climate sensitivity of electricity demand in India," Discussion Papers 14-05, Indian Statistical Institute, Delhi.
    5. 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.
    6. Randazzo, Teresa & Pavanello, Filippo & De Cian, Enrica, 2023. "Adaptation to climate change: Air-conditioning and the role of remittances," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    7. Reza Fazeli & Brynhildur Davidsdottir & Jonas Hlynur Hallgrimsson, 2016. "Climate Impact On Energy Demand For Space Heating In Iceland," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-23, May.
    8. 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.
    9. Eshita Gupta, 2014. "The Impact of development on the climate sensitivity of electricity demand in India," Discussion Papers 14-08, Indian Statistical Institute, Delhi.

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