Global warming and electricity demand in the rapidly growing city of Delhi: A semi-parametric variable coefficient approach

This paper estimates the climate sensitivity of electricity demand in Delhi using daily data on electricity demand and apparent temperature for the period 2000-09. The study adopts a semi-parametric variable coefficient model in order to investigate the impact of climatic factors on electricity demand. As evident from previous studies, electricity demand is a U-shaped function of temperature. We find the rising part of the temperature-electricity curve to become more pronounced over time implying an increase in cooling demand per unit increase in summer temperatures. The study therefore predicts the adverse effects of climate change on electricity demand to be asymmetrically distributed in different seasons in the future, resulting in a serious disequilibrium in the hot months.

► We examine the impact of global warming on electricity demand in Delhi. ► We estimate a semi-parametric variable coefficient model. ► The U-shaped temperature-electricity curve varies over time. ► Global warming is expected to increase cooling demand significantly. ► It is expected to reduce heating demand just marginally.