Sensitivity of Energy Demand to Temperature Changes

Here, the sensitivity of energy demand to climate is measured two ways. The first method uses elasticities that provide simple summary measures of how departures from normal temperatures affect energy consumption. The second approach, reported in the following section, uses econometric simulation to estimate how climate changes affect energy demand. (more…)

Numerical Simulation of Climate Impacts

To determine the effects of past climate trends on global energy consumption, the econometric equations providing the degree day elasticities reported previously are combined into an econometric simulation model. The endogenous variables determined by the model include energy demand in the residential, commercial, and industrial sectors of the U.S. economy and the derived demand for primary fuels used in electric power generation. (more…)