Electricity Consumption and Temperature: Evidence from Satellite Data / Jiaxiong Yao.

Format:

Book

Government document

Author/Creator:

Yao, Jiaxiong.

Series:

IMF Working Papers; Working Paper ; No. 2021/022

IMF Working Papers

Language:

English

Physical Description:

1 online resource (38 pages)

Other Title:

Electricity Consumption and Temperature

Place of Publication:

Washington, D.C. : International Monetary Fund, 2021.

Summary:

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°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°C increase in temperature is estimated to increase their electricity demand by 6.7% on average.

Notes:

Description based on print version record.

ISBN:

9781513569369

1513569368