Effects of climate change on industrial demand for electricity in New Brunswick
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Date
2023-08
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University of New Brunswick
Abstract
Climate change is a pervasive and intricate issue with irreversible long-term consequences. New Brunswick faces escalating hot days, storms, and sea levels, impacting electricity usage. This study addresses the previously unexplored impact of climate change on industrial electricity demand from 1970 to 2022, acknowledging its significance in bridging knowledge gaps.
The study employs a production function to derive industrial demand for electricity. Consequently, six econometric models, estimated through Ordinary Least Squares, reveal a direct link between temperature and demand: a 1°C rise corresponds to a 0.0025 Petajoules increase. There is also an inverse relationship between electricity price and industrial demand and higher economic activity increases industrial demand as well.