Agenda

Titolo completo: Climate impacts on residential electricity: Adjustments along the intensive and extensive margins

Autori: Teresa Randazzo, Enrica De Cian, Malcolm Mistry 

Abstract: This paper contributes to expand the empirical evidence on adaptation to climate change through the use of electricity along the intensive and extensive margin for a sample of households living across eight different OECD countries outside the United States. Our identification strategy relies on the cross-country and cross-household variation, as we combine a geocoded household survey on energy behaviours with high-resolution climate data to compute heating and cooling degree days. Using a control function approach we show that once the extensive margin is properly accounted for, cooling degree days (CDDs) influence electricity demand indirectly, through the use of air conditioners, which indeed significantly influence electricity demand.