How does daylight saving time affect electricity demand? An answer using aggregate data from a natural experiment in Western Australia

Seungmoon Choi, Alistair Pellen, Virginie Masson

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

Daylight saving time (DST) affects the lives of more than 1.6 billion people worldwide, with energy saving being the original rationale for its implementation. This study takes advantage of natural experiment data from September 2006 to March 2013 in Western Australia in which DST was observed from December 2006 to March 2009, to estimate the effect of DST on electricity demand. Using the difference-in-differences (DD) approach, we find that DST has little effect on overall electricity demand and electricity generation costs. However, it has a strong redistributional effect by reducing electricity demand substantially in the late afternoon and early evening. This redistributional effect of DST may be of particular interest for policymakers who are interested in controlling high demand and the short term energy market price.

Original languageEnglish
Pages (from-to)247-260
Number of pages14
JournalEnergy Economics
Volume66
DOIs
StatePublished - Aug 2017

Keywords

  • Daylight saving time
  • Electricity Generation Costs
  • Electricity demand

Fingerprint

Dive into the research topics of 'How does daylight saving time affect electricity demand? An answer using aggregate data from a natural experiment in Western Australia'. Together they form a unique fingerprint.

Cite this