Impact of Climate Change on Electricity Consumption: A Case Study of Pakistan

Abstract

Climate changes may have serious consequences worldwide and may affect many communities across the globe. Pakistan is one of the countries which has been severely affected by variations in climate. These climate changes have hit all sectors of the economy especially the energy. In this background, the object of the present analysis was to find the effect of “climate change” on “electricity consumption” in Pakistan. To analyze the results, researchers collected annually data of Pakistan from 1971-2017. The study reviewed the trend of climate variation for the last few decades. For estimation, the data have been taken from World Development Indicators (WDI), Water and Power Development Authority (WAPDA) and Climate Knowledge Portal World Bank Group. By using ARDL model, and taking data on annual basis, the nexuses between dependent and independent variables has been found. The study revealed significant results and recognized that climate have a substantial impact on nation’s energy demand. According to the results it is suggested that the government should take measures to overcome the crises and make strategic policies which can turn the crises into opportunities for bringing around structural changes in long run in the economy and in the society.