Impact of Climate Change on Electricity Demand: A Case Study ofPakistan

The energy sector is sensitive to changing weather patternsand Pakistan is one of those countries where temperature rise induced byclimate change is expected to be above the world average. In thisbackdrop the present study aims at finding the impact of climate changeon electricity demand in Pakistan at the regional and national level.Using monthly data on temperatures to find heating and cooling degreedays, the relationship between monthly electricity demand andtemperature is explored which is then used to find the impact ofprojected climate change on electricity demand. The results suggestsurging peak loads in summer season due to climatic effect which callsfor capacity instalments over and above that needed to cater to rise inelectricity demand attributable to economic growth. JEL Classification:Q47, Q54 Keywords: Energy, Climate Change, Electricity Demand, DegreeDays, Pakistan