|Climate change is projected to have severe impacts on the frequency and intensity of peak electricity demand across the United States
Maximilian Auffhammer, Patrick Baylis, Catherine H. Hausman
It has been suggested that climate change impacts on the electric sector will account for the majority of global economic damages by the end of the current century and beyond. The empirical literature has shown significant increases in climate-driven impacts on overall consumption, yet has not focused on the cost implications of the increased intensity and frequency of extreme events driving peak demand, which is the highest load observed in a period. We use comprehensive, high-frequency data at the level of load balancing authorities to parameterize the relationship between average or peak electricity demand and temperature for a major economy.