The Impact of Temperature Changes on Residential Energy Consumption
To investigate the link between rising global temperature and global energy use, we estimate an energy demand model that is driven by temperature changes, prices and income. The estimation is based on an unbalanced panel of 157 countries over three decades. We limit the analysis to the residential sector and distinguish four different fuel types (oil, natural gas, coal and electricity). Compared to previous papers, we have a better geographical coverage and consider non-linearities in the impact of temperature on energy demand as well as temperature-income interactions. We find that oil, gas and electricity use are driven by a non-linear heating effect: Energy use not only decreases with rising temperatures due to a reduced demand for energy for heating purposes, but the speed of that decrease declines with rising temperature levels. Furthermore we find evidence that the temperature elasticity of energy use is affected by the level of temperature as well as the level of income
|Date of creation:||Apr 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:1618. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)
If references are entirely missing, you can add them using this form.