Climate impacts: temperature and electricity consumption

Abstract

One of the aspects of climate change is temperature rise. Temperature rise or fluctuations affect human economic activities and electricity consumption. This paper estimates the changes in electricity consumption due to temperature fluctuation at the county scale in rural China. By using the statistics of counties from 2006 to 2015 in a fixed-effect panel model, the results indicate that a one-degree temperature increase in summer days may lead to 0.015% more electricity consumption per capita, and this correlation may be weaker as income increases. Moreover, a one-degree temperature decrease in winter days may lead to 0.002% more electricity consumption. The northern region may consume 0.021% more electricity than the southern region when facing the same temperature drop. Overall, the effect of temperature on electricity consumption is modest, particularly for a drop in temperature, but the usage of other types of energy may increase to adapt to the cold.