The impacts of weather variations on energy demand and carbon emissions

This paper examines the impacts of climate fluctuations on carbon emissions using monthly models of US energy demand. The econometric analysis estimates price, income, and weather elasticities of short-run energy demand. Our model simulations suggest that warmer climate conditions in the US since 1982 slightly reduced carbon emissions in the US. Lower energy use associated with reduced heating requirements offsets higher fuel consumption to meet increased air-conditioning needs. The analysis also suggests that climate change policies should allow some variance in carbon emissions due to short-term weather variations. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: Q41; Q20; C51.