DEVELOPMENT AND THE IMPACT OF CLIMATE CHANGE ON ENERGY DEMAND: EVIDENCE FROM BRAZIL

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 ela...

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Bibliographic Details
Published in:Climate change economics 2010-12, Vol.1 (3), p.187-208
Main Authors: DEPAULA, GUILHERME, MENDELSOHN, ROBERT
Format: Article
Language:English
Subjects:
Climate change
Climate models
Cost estimation models
Economic models
Electricity
Energy
Geographic regions
Global warming
Income estimates
Low income
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Summary: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.
ISSN:2010-0078
2010-0086
DOI:10.1142/S2010007810000157