UW Professor Publishes Study on Temperature’s Impact on Energy Demand

Tim Considine, a University of Wyoming School of Energy Resources professor of energy economics, recently contributed an article to the Journal of the Association of Environmental and Resource Economists.

The journal is recognized as a premier publication covering the crucial intersection of human behavior and the natural environment.

The article, titled “The Effect of Temperature on Energy Demand and the Role of Adaptation,” examines the effect of daily temperature on monthly energy demand for all major fuels -- including electricity, natural gas and petroleum products -- and end-use sectors in the United States. Based on over three decades of monthly, state-level data, the article further investigates the measurable human response to the impacts of increased fuel consumption resulting from higher temperatures.

Edward Manderson, a senior lecturer in environmental economics at the University of Manchester, was co-author of the piece.

“The paper develops an innovative methodology for identifying how energy consumers adapt to temperature change, finding that adaptation has led to aggregate annual savings in energy consumption and expenditure,” Considine says. “This finding is important because integrated assessment models that underpin the social cost of carbon presume higher temperatures impose higher energy costs.”

In short, the research suggests that human adaptation warrants significant consideration within climate policy frameworks, alongside mitigation efforts.

“Our analysis indicates that the responsiveness of energy demand to climate is highly contingent upon adaptive measures undertaken by households and businesses,” Considine says. “Such adaptations, encompassing both behavioral adjustments and technological advancements, can substantially lessen the sensitivity of energy consumption to temperature fluctuations.”

A leader in his field, Considine’s research focuses on a range of energy-related topics, including petroleum market analysis; the economic impacts of oil and gas development; the effects of climate and weather on energy demand; and economic welfare related to unconventional energy technology.

The full article can be downloaded here: https://www.journals.uchicago.edu/doi/10.1086/732142.