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Impacts of Climate Change on Residential Electricity Consumption

Impacts of Climate Change on Residential Electricity Consumption

Evidence from Billing Data

Chapter:
(p.311) 11 Impacts of Climate Change on Residential Electricity Consumption
Source:
The Economics of Climate Change
Author(s):
Anin AroonruengsawatMaximilian Auffhammer
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226479903.003.0012

This chapter provides information critical for formulating policy in the energy sector and describes analysis of an unusually complete panel data set for California from 2003 to 2006. Supplementing these data with weather data and census information by zip code and controlling for household, month, and year fixed effects, the electricity consumption response to changes in temperature across sixteen climate zones is examined. Flexible temperature response functions are estimated by zone, and there is heterogeneity in the response. The greatest impact occurs in areas with the largest number of high and extremely high temperatures. The impact of other variables on electricity consumption, including the percent of households using electricity for heating, the percent using natural gas, urban location, and age of the structure is also explored. Overall, the study finds larger and more nonlinear impacts on electricity consumption from temperature extremes than had been previously found.

Keywords:   climate change, electricity consumption, California, billing data, census information, zip code, temperature extremes

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