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Jiaxiong Yao
Past studies on the relationship between electricity consumption and temperature have primarily focused on individual countries. Many regions are understudied as a result of data constraint. This paper studies the relationship on a global scale, overcoming the data constraint by using grid-level night light and temperature data. Mostly generated by electricity and recorded by satellites, night light has a strong linear relationship with electricity consumption and is correlated with both its extensive and intensive margins. Using night light as a proxy for electricity consumption at the grid level, we find: (1) there is a U-shaped relationship between electricity consumption and temperature; (2) the critical point of temperature for minimum electricity consumption is around 14.6°C for the world and it is higher in urban and more industrial areas; and (3) the impact of temperature on electricity consumption is persistent. Sub-Saharan African countries, while facing a large electricity deficit already, are particularly vulnerable to climate change: a 1°C increase in temperature is estimated to increase their electricity demand by 6.7% on average.
Jiaxiong Yao

differentiate more industrial areas from less industrial areas, we sort states and provinces by their average nitrogen dioxide density, which we derive from NASA’s satellite data. 7 NO 2 is a major pollutant from industrial production. Higher NO 2 density represents more industrial areas. Appendix A provides a graphic illustration of NO 2 distribution across Europe and Africa using more recent data. To compare night light with variables at the country level, we use electricity access, electricity consumption, and GDP from the World Development Indicators. We use imports