The impact of extreme climate change on the fluctuation of electricity energy demand——Evidence from China's prefecture-level cities

Abstract

Climate change directly make the demand for electricity diversified and uncertain, which increase the risk of power grid operation. This paper attempts to explore the impact of extreme climate change on the fluctuation of China's electricity energy demand from the perspective of climate change. Based on the panel data of 90 prefecture-level cities in China from 1989 to 2017, the author builds an econometric model to test the impact of extreme low temperature and extreme high temperature on electricity demand. The results show that the occurrence of extreme high temperature weather has a positive effect on residential electricity demand while the emergence of extreme low temperature weather has a negative effect.