Seasonal temperature variations and energy demand |
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Authors: | Enrica De Cian Elisa Lanzi Roberto Roson |
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Institution: | 1. Fondazione Eni Enrico Mattei, Isola di San Giorgio Maggiore, 30124, Venice, Italy 2. Economics Department, Ca’ Foscari University, Cannaregio 873, Venice, Italy 3. IEFE Bocconi University, Milan, Italy
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Abstract: | This paper presents an empirical study of the relationship between residential energy demand and temperature. Unlike previous studies in this field, the data sample has a global coverage and special emphasis is given to the heterogeneous response of different regions and to the contrasting effects on energy demand for cooling and heating purposes. To account for this we distinguish between different regions, seasons, and energy sources. Short- and long-run temperature demand elasticities are estimated. These features make the model results especially valuable in the analysis of climate change impacts as they provide an empirical basis for the study of the impact of climate change on energy demand. To illustrate the potential of the results as a basis for the study of climate change impacts, the estimates are used in a simple exercise that projects changes in energy demand due to temperatures increase in 2085. |
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