The effect of climate change on electricity expenditures in Massachusetts
Kaufmann, Robert K.
Véliz, Karina D.
Cleveland, Cutler J.
Stoner, Anne M. K.
MetadataShow full item record
Accepted manuscriptSupporting documentation
Citation (published version)R. Kaufmann, Karina D Véliz, Cutler J Cleveland, Anne MK Stoner. 2017. "The effect of climate change on electricity expenditures in Massachusetts." Energy Policy, Volume 106, pp. 1 - 11. https://doi.org/10.1016/j.enpol.2017.03.016
Climate change affects consumer expenditures by altering the consumption of and price for electricity. Previous analyses focus solely on the former, which implicitly assumes that climate-induced changes in consumption do not affect price. But this assumption is untenable because a shift in demand alters quantity and price at equilibrium. Here we present the first empirical estimates for the effect of climate change on electricity prices. Translated through the merit order dispatch of existing capacity for generating electricity, climate-induced changes in daily and monthly patterns of electricity consumption cause non-linear changes in electricity prices. A 2°C increase in global mean temperature increases the prices for and consumption of electricity in Massachusetts USA, such that the average household’s annual expenditures on electricity increase by about 12 percent. Commercial customers incur a 9 percent increase. These increases are caused largely by higher prices for electricity, whose impacts on expenditures are 1.3 and 3.6 fold larger than changes in residential and commercial consumption, respectively. This suggests that previous empirical studies understate the effects of climate change on electricity expenditures and that policy may be needed to ensure that the market generates investments in peaking capacity to satisfy climate-driven changes in summer-time consumption.
Showing items related by title, author, creator and subject.
Contribution of leaf specular reflection to canopy reflectance under black soil case using stochastic radiative transfer model Yang, Bin; Knyazikhin, Yuri; Zhao, Haimeng; Ma, Yuzhong (Elsevier Science BV, 2018-12-15)Numerous canopy radiative transfer models have been proposed based on the assumption of “ideal bi-Lambertian leaves” with the aim of simplifying the interactions between photons and vegetation canopies. This assumption may ...
Integrating archaeology and ancient DNA analysis to address invasive species colonization in the Gulf of Alaska West, Catherine; Hofman, Courtney A.; Ebbert, Steve; Martin, John; Shirazi, Sabrina; Dunning, Samantha; Maldonado, Jesus E. (WILEY, 2017-10-01)The intentional and unintentional movement of plants and animals by humans has transformed ecosystems and landscapes globally. Assessing when and how a species was introduced are central to managing these transformed ...
Petroff, A.; Murphy, J.G.; Thomas, S.C.; Geddes, Jeffrey A. (PERGAMON-ELSEVIER SCIENCE LTD, 2018-10-01)Aerosol fluxes were measured by eddy-correlation for 8 weeks of the summer and fall of 2011 above a temperate broadleaf forest in central Ontario, Canada. These size-resolved measurements apply to particles with optical ...