Temperature Sensitivity of Residential Energy Demand on the Global Scale: A Bayesian Partial Pooling Model

Fuente: arXiv
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Auteurs principaux: Hinrichsen, Peer Lasse, Rehdanz, Katrin, Tol, Richard S. J.
Format: Preprint
Publié: 2025
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author Hinrichsen, Peer Lasse
Rehdanz, Katrin
Tol, Richard S. J.
author_facet Hinrichsen, Peer Lasse
Rehdanz, Katrin
Tol, Richard S. J.
contents This paper contributes to the limited literature on the temperature sensitivity of residential energy demand on a global scale. Using a Bayesian Partial Pooling model, we estimate country-specific intercepts and slopes, focusing on non-linear temperature response functions. The results, based on data for up to 126 countries spanning from 1978 to 2023, indicate a higher demand for residential electricity and natural gas at temperatures below -5 degrees Celsius and a higher demand for electricity at temperatures above 30 degrees Celsius. For temperatures above 23.5 degrees Celsius, the relationship between power demand and temperature steepens. Demand in developed countries is more sensitive to high temperatures than in less developed countries, possibly due to an inability to meet cooling demands in the latter.
format Preprint
id arxiv_https___arxiv_org_abs_2506_22768
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Temperature Sensitivity of Residential Energy Demand on the Global Scale: A Bayesian Partial Pooling Model
Hinrichsen, Peer Lasse
Rehdanz, Katrin
Tol, Richard S. J.
General Economics
Economics
This paper contributes to the limited literature on the temperature sensitivity of residential energy demand on a global scale. Using a Bayesian Partial Pooling model, we estimate country-specific intercepts and slopes, focusing on non-linear temperature response functions. The results, based on data for up to 126 countries spanning from 1978 to 2023, indicate a higher demand for residential electricity and natural gas at temperatures below -5 degrees Celsius and a higher demand for electricity at temperatures above 30 degrees Celsius. For temperatures above 23.5 degrees Celsius, the relationship between power demand and temperature steepens. Demand in developed countries is more sensitive to high temperatures than in less developed countries, possibly due to an inability to meet cooling demands in the latter.
title Temperature Sensitivity of Residential Energy Demand on the Global Scale: A Bayesian Partial Pooling Model
topic General Economics
Economics
url https://arxiv.org/abs/2506.22768