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The welfare effects of time reallocation: evidence from Daylight Saving Time

Les effets de la réaffectation du temps sur le bien-être: données probantes tirées de l’heure d’été

Joan Costa-Font, Sarah Flèche and Ricardo Pagan
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Ricardo Pagan: Universidad de Málaga [Málaga] = University of Málaga [Málaga]

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Abstract: Daylight Saving Time (DST) is a widely adopted practice implemented by over 70 countries to align sunlight with day‐to‐day activities and reduce energy demands. However, we do not have a clear knowledge of how it affects individuals' welfare. Using a regression discontinuity combined with a difference‐in‐differences design, we find that the Spring DST transition causes a significant decline in life satisfaction. By inducing a reallocation of time, the transition into DST deteriorates sleep quality and increases time stress, which in turn affects physical and emotional health. Using an event study approach, we find that such effects persist for about six days after the DST transition. Conversely, we provide evidence that the Autumn DST transition gives rise to a significant increase in life satisfaction. Finally, using a simple cost‐benefit analysis, we discuss the potential benefits of ending DST.

Date: 2024-01-10
Note: View the original document on HAL open archive server: https://hal.science/hal-04581752v1
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Published in Economica, 2024, 91 (362), pp.547-568. ⟨10.1111/ecca.12510⟩

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Related works:
Journal Article: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024) Downloads
Working Paper: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024) Downloads
Working Paper: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04581752

DOI: 10.1111/ecca.12510

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