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Posted by GeekBoy on March 14, 2008, 2:57 pm
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Abstract
The history of Daylight Saving Time (DST) has been long and controversial.
Throughout its
implementation during World Wars I and II, the oil embargo of the 1970s, and
more regular
practice today, the primary rationale for DST has always been to promote
energy conservation.
Nevertheless, there is surprisingly little evidence that DST actually saves
energy. This paper
takes advantage of a natural experiment in the state of Indiana to provide
the first empirical
estimates of DST effects on electricity consumption in the United States
since the mid-1970s.
Focusing on residential electricity demand, we conduct the first-ever study
that uses micro-data
on households. The dataset consists of more than 7 million observations on
monthly billing data
for nearly all households in southern Indiana for three years. Our main
finding is that-contrary
to the policy's intent-DST increases residential electricity demand.
Estimates of the overall
increase range from 1 to 4 percent, but we find that the effect is not
constant throughout the DST
period. There is some evidence of electricity savings during the spring, but
the effect lessens,
changes sign, and appears to cause the greatest increase in consumption near
the end of the DST
period in the fall. These findings are consistent with simulation results
that point to a tradeoff
between reducing demand for lighting and increasing demand for heating and
cooling. Based on
the dates of DST practice before the 2007 extensions, we estimate a cost of
increased electricity
bills to Indiana households of $8.6 million per year. We also estimate
social costs of increased
pollution emissions that range from $1.6 to $5.3 million per year.
*
See whole paper at: http://www2.bren.ucsb.edu/%7Ekotchen/links/DSTpaper.pdf
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