The Impact of Temperature Change on Energy Demand: A Dynamic Panel Analysis

Enrica De Cian (), Elisa Lanzi and Roberto Roson

No 2007.46, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper presents an empirical study of energy demand, in which demand for a series of energy goods (Gas, Oil Products, Coal, Electricity) is expressed as a function of various factors, including temperature. Parameter values are estimated econometrically, using a dynamic panel data approach. Unlike previous studies in this field, the data sample has a global coverage, and special emphasis is given to the dynamic nature of demand, as well as to interactions between income levels and sensitivity to temperature variations. These features make the model results especially valuable in the analysis of climate change impacts. Results are interpreted in terms of derived demand for heating and cooling. Non-linearities and discontinuities emerge, making it necessary to distinguish between different countries, seasons, and energy sources. Short- and long-run temperature elasticities of demand are estimated.

Keywords: Energy Demand; Cooling Heating Effect; Temperature; Dynamic Panel (search for similar items in EconPapers)
JEL-codes: C3 Q41 Q54 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

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Related works:
Working Paper: The Impact of Temperature Change on Energy Demand: A Dynamic Panel Analysis (2007)
Working Paper: The Impact of Temperature Change on Energy Demand a Dynamic Panel Analysis (2007)
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