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http://dx.doi.org/10.15266/KEREA.2016.25.2.141

Temperature Effects on the Industrial Electricity Usage  

Kim, In-Moo (Sungkyunkwan University)
Lee, Yong-Ju (Yeungnam University)
Lee, Sungro (Korea Gas Corporation)
Kim, Daeyong (Korea Development Institute)
Publication Information
Environmental and Resource Economics Review / v.25, no.2, 2016 , pp. 141-178 More about this Journal
Abstract
This paper, using AMR (Automatic Meter Reading) electricity data accurately measured in real time, analyses the characteristics and patterns of temperature effect on the industrial electricity usage. For this goal, the paper constructs and estimates a model which captures the properties of AMR time series including long-term trends, mid-term temperature effects, and short-term special day effects. Based on the estimated temperature response function and the temperature effect, we categorize the whole industry into two groups: one group with sharp temperature effect and the other with weak temperature effect. Furthermore, the industry group with sharp temperature effect is classified into a summer peak industry group and a winter peak industry group, based on the estimates of the temperature response function. These empirical results carry practical policy implications on the real time electricity demand management.
Keywords
Industrial electricity usage; Electricity demand management; Temperature response function; Temperature effect; Canonical cointegrating regression;
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