Does Extending Daylight Saving Time Save Energy? Evidence from an Australian Experiment
University of California, Berkeley
University of Washington - Department of Economics; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 2704
Several countries are considering extending Daylight Saving Time (DST) in order to conserve energy, and the U.S. will extend DST by one month beginning in 2007. However, projections that these extensions will reduce electricity consumption rely on extrapolations and simulations rather than empirical evidence. This paper, in contrast, examines a quasi-experiment in which parts of Australia extended DST in 2000 to facilitate the Sydney Olympics. Using detailed panel data and a triple differences specification, we show that the extension did not conserve electricity, and that a prominent simulation model overstates electricity savings when it is applied to Australia.
Number of Pages in PDF File: 48
Keywords: public economics, daylight saving time, energy
JEL Classification: Q48, C21
Date posted: April 21, 2007
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