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When does daylight saving time save electricity? Weather and air-conditioning

Cahit Guven (), Haishan Yuan, Quanda Zhang and Vural Aksakalli

Energy Economics, 2021, vol. 98, issue C

Abstract: Previous research on the effects of daylight saving time (DST) on electricity consumption has provided mixed results. We use daily state-level panel data on electricity consumption in Australia between 1998 and 2015, during which period there was considerable variation in the presence and timing of DST implementation, as well as in weather conditions and cooling usage within and between states. This provides us with a unique opportunity to study the interaction effects of DST with exogenous variation in daily weather conditions and cooling usage over two decades. Our results show that the effect of DST on electricity consumption depends strongly on weather conditions and cooling usage. Forward DST increases the electricity consumption when temperatures and air conditioner ownership are higher. We provide simulations for countries in the European Union that need to decide on DST adoption in the coming year. Our findings are policy-relevant given rising temperatures and worldwide increases in cooling usage during summer.

Keywords: Daylight savings; Electricity consumption; Climate; Cooling (search for similar items in EconPapers)
JEL-codes: Q41 Q48 Q54 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.eneco.2021.105216

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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