Electricity Consumption and Temperature : Evidence from Satellite Data /

Past studies on the relationship between electricity consumption and temperature have primarily focused on individual countries. Many regions are understudied as a result of data constraint. This paper studies the relationship on a global scale, overcoming the data constraint by using grid-level nig...

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Detalhes bibliográficos
Autor principal: Yao, Jiaxiong
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2021.
coleção:IMF Working Papers; Working Paper ; No. 2021/022
Acesso em linha:Full text available on IMF
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245 1 0 |a Electricity Consumption and Temperature :   |b Evidence from Satellite Data /  |c Jiaxiong Yao. 
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520 3 |a Past studies on the relationship between electricity consumption and temperature have primarily focused on individual countries. Many regions are understudied as a result of data constraint. This paper studies the relationship on a global scale, overcoming the data constraint by using grid-level night light and temperature data. Mostly generated by electricity and recorded by satellites, night light has a strong linear relationship with electricity consumption and is correlated with both its extensive and intensive margins. Using night light as a proxy for electricity consumption at the grid level, we find: (1) there is a U-shaped relationship between electricity consumption and temperature; (2) the critical point of temperature for minimum electricity consumption is around 14.6 degree C for the world and it is higher in urban and more industrial areas; and (3) the impact of temperature on electricity consumption is persistent. Sub-Saharan African countries, while facing a large electricity deficit already, are particularly vulnerable to climate change: a 1 degree C increase in temperature is estimated to increase their electricity demand by 6.7% on average. 
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