{
  "title": "Electricity Consumption and Temperature: Evidence from Satellite Data",
  "publication": "IMF Working Papers, February 5, 2021",
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  "summary": "Past studies on the relationship between electricity consumption and temperature have primarily focused on individual countries. Many regions are understudied as a result of data constraint.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Research objective: Study the relationship between electricity consumption and temperature on a global scale using grid-level night light and temperature data to overcome data constraints that limited prior country-level studies.\n- Rationale: Night light, mostly generated by electricity and recorded by satellites, has a strong linear relationship with electricity consumption and is correlated with both its extensive and intensive margins."
    },
    {
      "heading": "Data and Method",
      "content": "- Proxy: Night light used as a proxy for electricity consumption at the grid level.\n- Scope: Global grid-level analysis (study spans 38 pages).\n- Series and identifiers: Working Paper No. 2021/022; Issue 022; Volume 2021; DOI: https://doi.org/10.5089/9781513568539.001; ISBN: 9781513568539; ISSN: 1018-5941; Stock No: WPIEA2021022."
    },
    {
      "heading": "Key Findings",
      "content": "- U-shaped relationship:\n  - There is a U-shaped relationship between electricity consumption and temperature.\n- Critical temperature:\n  - The critical point of temperature for minimum electricity consumption is around 14.6°C for the world.\n  - The critical point is higher in urban and more industrial areas.\n- Persistence:\n  - The impact of temperature on electricity consumption is persistent.\n- Vulnerability of Sub-Saharan Africa:\n  - Sub-Saharan African countries are particularly vulnerable: a 1°C increase in temperature is estimated to increase their electricity demand by 6.7% on average.\n- Empirical justification:\n  - Night light has a strong linear relationship with electricity consumption and correlates with both extensive and intensive margins of electricity use."
    },
    {
      "heading": "Implications and Considerations",
      "content": "- Global applicability:\n  - Grid-level satellite night light enables analysis in regions previously understudied due to data constraints, allowing assessment of temperature–electricity links across diverse geographies.\n- Urban and industrial infrastructure:\n  - Higher critical temperatures in urban and more industrial areas imply differing temperature sensitivity and potential adaptation needs across space.\n- Climate change risk:\n  - Temperature-driven increases in electricity demand (e.g., 1°C → 6.7% increase for Sub-Saharan Africa) underscore climate change pressures on already large electricity deficits in vulnerable regions.\n- Persistence of effects:\n  - Persistent temperature impacts suggest planning for sustained shifts in electricity demand rather than temporary spikes.\n\nJiaxiong Yao, \"Electricity Consumption and Temperature: Evidence from Satellite Data\", IMF Working Papers 2021, 022 (February 5, 2021).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/02/05/electricity-consumption-and-temperature-evidence-from-satellite-data-50031"
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    "Authors: Jiaxiong Yao",
    "Published: February 5, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513568539.001",
    "Research objective: Study the relationship between electricity consumption and temperature on a global scale using grid-level night light and temperature data to overcome data constraints that limited prior country-level studies.",
    "Rationale: Night light, mostly generated by electricity and recorded by satellites, has a strong linear relationship with electricity consumption and is correlated with both its extensive and intensive margins.",
    "Proxy: Night light used as a proxy for electricity consumption at the grid level.",
    "Scope: Global grid-level analysis (study spans 38 pages).",
    "Series and identifiers: Working Paper No. 2021/022; Issue 022; Volume 2021; DOI: https://doi.org/10.5089/9781513568539.001; ISBN: 9781513568539; ISSN: 1018-5941; Stock No: WPIEA2021022.",
    "U-shaped relationship:",
    "Critical temperature:",
    "Persistence:",
    "Vulnerability of Sub-Saharan Africa:",
    "Empirical justification:",
    "Global applicability:",
    "Urban and industrial infrastructure:",
    "Climate change risk:",
    "Persistence of effects:",
    "**Working Paper**"
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