Temperature effects on firms’ electricity demand: An analysis of sectorial differences in Spain

Julián Moral-Carcedo and Julián Pérez-García
Authors registered in the RePEc Author Service: Julian Perez Garcia and Julian Moral Carcedo

Applied Energy, 2015, vol. 142, issue C, 407-425

Abstract: Distinct responses of electricity demand to temperature changes are usually assumed for residential, industrial, and service sectors. However, available empirical studies on the temperature effect of electricity demand provide only partial evidence or evidence at a very aggregate level. Our paper aims to partially fill this existing gap in the literature. Using disaggregated data by sectors, we carry out a comprehensive analysis of the sectorial breakdown of temperature effects on firms’ electricity demand. In-depth knowledge of sectorial demand responses to temperature changes is fundamental for improved energy planning because such responses represent a potential source of demand price inelasticity, one of the main obstacles for developing adequate demand response planning mechanisms. Our findings indicate that in Spain firms’ aggregate electricity demand is rather insensitive to temperature. However, there are marked differences among sectors, with the highest sensitivity found for firms in the service sector. We show that the aggregate insensitiveness of firms’ electricity demand to temperature is mainly due to a demand composition effect.

Keywords: Sectorial electricity demand; Temperature effect; Cooling degree-days (CDD); Heating degree-days (HDD); Electricity demand (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030626191401321X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Temperature Effects on Firms’ Electricity Demand: An Analysis of Sectorial Differences in Spain (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:142:y:2015:i:c:p:407-425

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2014.12.064

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().