Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Energy Demand and Efficiency 5 Location: B132 Session Chair: Princewill Okwoche, Namibia University of Science and Technology | |
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The Impact of Extreme Temperatures on the Energy Efficiency and Emissions of Manufacturing Firms 1: Shandong University, China; 2: University of Birmingham, United Kingdom; 3: University of Cambridge, United Kingdom This paper examines theoretically and empirically how extreme temperatures may affect the energy efficiency of manufacturing firms. A conceptual framework outlines the various mechanisms linking temperature and energy efficiency which we test by applying a semi- parametric model to firm-level and climatic data from 2007 to 2015. Results show that compared to temperate days (15-20°C), each additional day with temperatures below -5°C or above 30°C reduces energy efficiency by 1.20% and 0.51%, respectively. Cold extremes are found to drive the majority of short-term losses. Mechanism analysis suggests that temperature indirectly affects energy efficiency by impairing firms’ financial health, which lowers investment in energy-efficient technologies. The impact is greater for private, small, and financially constrained firms, and differs across sectors. Temperature-induced inefficiency added approximately 233,700 tons of coal equivalent or around 0.01% of total manufacturing energy consumption, thereby aggravating both carbon emissions and local air pollution. Climate projections point to considerable future losses, underscoring the need for targeted adaptation policies in the manufacturing sector. | |