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

18 Pages Posted: 15 Mar 2009 Last revised: 2 Nov 2014

See all articles by Enrica De Cian

Enrica De Cian

Fondazione Eni Enrico Mattei (FEEM); CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Elisa Lanzi

Fondazione ENI Enrico Mattei (FEEM)

Roberto Roson

Ca Foscari University of Venice - Dipartimento di Economia; Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy; Loyola Andalucia University

Date Written: February 1, 2007

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 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. Nonlinearities and discontinuities emerge, making necessary to distinguish between different regions, seasons, and energy sources. Short and long run temperature elasticities of demand are estimated.

Climate change impacts on human life have well defined and different origins, nevertheless in the determination of their final effects, especially those involving social economic responses, interactions among impacts are likely to play an important role.

Keywords: Energy demand, cooling effect, heating effect, temperature, dynamic panel

JEL Classification: C3, Q41, Q54

Suggested Citation

De Cian, Enrica and Lanzi, Elisa and Roson, Roberto, The Impact of Climate Change on Energy Demand: A Dynamic Panel Analysis (February 1, 2007). CMCC Research Paper No. 9. Available at SSRN: https://ssrn.com/abstract=1359045 or http://dx.doi.org/10.2139/ssrn.1359045

Enrica De Cian

Fondazione Eni Enrico Mattei (FEEM) ( email )

Campo S. M. Formosa, Castello 5252
Venice, 30122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Elisa Lanzi

Fondazione ENI Enrico Mattei (FEEM) ( email )

Campo S. M. Formosa, Castello 5252
Venezia, 30122
Italy
+39 0412711470 (Phone)

HOME PAGE: http://www.feem.it

Roberto Roson (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy
+39 041 2349147 (Phone)
+39 041 2349176 (Fax)

HOME PAGE: http://venus.unive.it/roson

Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy ( email )

viale Filippetti, 9
Milan, 20122
Italy

Loyola Andalucia University ( email )

Escritor Castilla Aguayo no. 4
Cordoba, CORDOBA 14004
Spain

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
165
Abstract Views
1,330
rank
189,845
PlumX Metrics