Development and the Impact of Climate Change on Energy Demand: Evidence from Brazil

Climate Change Economics (CCE), Forthcoming

Posted: 2 Jun 2011

See all articles by Guilherme Depaula

Guilherme Depaula

Yale University - School of Forestry and Environmental Studies

Robert O. Mendelsohn

Yale University - School of Forestry & Environmental Studies; Yale University

Date Written: December 1, 2010

Abstract

This paper investigates the effects of climate on residential electricity use for households from different income classes in Brazil. Using cross-sectional data, the study finds that the temperature elasticity of electricity consumption varies significantly across income classes. The temperature elasticity of low income households is not significantly different from zero but middle and high income families have a long run temperature elasticity of 0.8 and 1.6 respectively. As emerging low latitude countries develop and incomes rise, the welfare damages of warming in the energy sector will become substantial.

Keywords: Climate change, Brazil, energy demand, cross-section model

Suggested Citation

Depaula, Guilherme and Mendelsohn, Robert O., Development and the Impact of Climate Change on Energy Demand: Evidence from Brazil (December 1, 2010). Climate Change Economics (CCE), Forthcoming. Available at SSRN: https://ssrn.com/abstract=1856403

Guilherme Depaula (Contact Author)

Yale University - School of Forestry and Environmental Studies ( email )

New Haven, CT 06511
United States

Robert O. Mendelsohn

Yale University - School of Forestry & Environmental Studies ( email )

195 Prospect Street
New Haven, CT 06511
United States

Yale University ( email )

New Haven, CT 06520
United States
2034325128 (Phone)

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