Air pollution is a driver of residential electricity demand, study finds
Cleaner urban air will help reduce energy demand and mitigate carbon
emissions

Date:
August 17, 2020
Source:
National University of Singapore
Summary:
A new study reveals that households respond to ambient air pollution
by increasing electricity consumption, which in turn increases the
carbon emissions that are co-produced in supplying the electricity.



FULL STORY ==========================================================================
A study conducted by Associate Professor Alberto Salvo from the
Department of Economics at the National University of Singapore (NUS)
Faculty of Arts and Social Sciences revealed that households respond
to ambient air pollution by increasing electricity consumption,
which in turn increases the carbon emissions that are co-produced in
supplying the electricity. The study, set in Singapore, revealed that
better air quality will bring about climate co- benefits -- in reducing electricity generation via lower household demand, and thus mitigating
carbon emissions.


========================================================================== Assoc Prof Salvo said, "Urban areas in developing Asian nations are home
to an expanding base of energy consumers, with energy supply likely to
remain carbon intensive for decades in the absence of major technological
or regulatory shifts. Understanding what drives energy demand across the socioeconomic distribution of Singapore households can provide insight
on the future energy demand of urban populations in the region's cities
as incomes rise. This is important for policymakers when forecasting and influencing future emissions paths in the context of climate change."
The results of the study were published in the Journal of the Association
of Environmental and Resource Economists in July.

The link between air pollution and household energy demand The study
examined utility meter readings of 130,000 households -- a 1-in-10 random sample of all households in Singapore -- from 2012 to 2015. The same household's energy consumption was examined over time and compared with concurrent PM2.5 measurements (fine particles less than 2.5 micrometres
in diameter) from the air-monitoring network, which is the standard for measuring air pollution.

The findings showed that overall electricity demand grew by 1.1 per cent
when PM2.5 rose by 10 micrograms per cubic metre (?g/m^3). The reasons
were two- fold: (i) increased air pollution led to households staying
indoors more to mitigate the pollution impact; and (ii) PM2.5 pollution
led to the closing of windows, and running of air-conditioners and air purifiers more intensively either to reduce indoor particle levels or
provide relief from indoor heat.

Besides electricity, the study found that households exposed to air
pollution consumed more natural gas. Another study by Assoc Prof Salvo
that was published in 2018 found that households consumed more water
from the grid when exposed to air pollution.



==========================================================================
In terms of research design, the study had to contend with the fact
that air pollution is not only a driver of electricity demand but also a product of fossil-fuel based electricity generation. "It was necessary
to separate cause from effect. To do that, periodical land burning
across Southeast Asia, which causes transboundary haze, was used as an instrument," Assoc Prof Salvo said.

Delving deeper, the study found that PM2.5 had a larger percentage
impact on electricity demand as household income and air conditioning
access increase. It was observed that when PM2.5 increased by 10 ?g/m^3, electricity consumption among condominium dwellers increased by 1.5
per cent, compared to a 0.75 per cent increase by households in one- to two-room apartments. This income differential was due to PM2.5 inducing higher-income households to turn on air- conditioners and air purifiers
when at home. The 1.5 per cent increase in electricity consumption is equivalent to running the air-conditioning unit for another 10 hours per
month. At the time of study, 14 per cent of one- and two- room apartments
had air-conditioning, compared with 99 per cent of condominium apartments.

To complement the observational evidence from utility meters, a review
of product catalogues on air conditioners revealed that air-conditioner manufacturers promote indoor air quality as an additional product
attribute to cooling. A 311-person survey on home energy behaviour also
found that haze pollution induced sleeping with the windows closed, less
dining out, and the increased use of the air conditioner and air purifier.

Forecasting energy demand and mitigating climate change Forty per cent
of the developing world's population live in the tropics, and PM2.5
pollution ranges between 20 and 200 ?g/m^3. However, only 8 per cent
of the tropics' three billion people currently have air conditioners,
compared to 76 per cent in Singapore.

Assoc Prof Salvo said, "This study shows that households care about the
quality of the air that they breathe, revealed through their spending
on utilities, in particular, to power air-conditioners. Cleaner urban
air will reduce energy demand, as households engage in less defensive behaviour, and this helps to mitigate carbon emissions." He added,
"At the same time, lower-income households are less able to afford
such defensive spending on utilities. This observed inequality in
defensive behaviour may also exacerbate health inequalities, especially
in developing countries. Overall, this research can contribute towards longer-term forecasting of energy demand as developing Asian countries
face the twin issues of a rising urban middle class exposed to air
pollution, and the need to cope with climate change." Moving forward,
Assoc Prof Salvo will continue to explore -- with a focus on Asia --
how households respond to environmental harms and what such responses
reveal about their preferences for environmental quality.


========================================================================== Story Source: Materials provided by
National_University_of_Singapore. Note: Content may be edited for style
and length.


========================================================================== Journal Reference:
1. Alberto Salvo. Local Pollution as a Determinant of Residential
Electricity Demand. Journal of the Association of Environmental
and Resource Economists, 2020; 7 (5): 837 DOI: 10.1086/709533 ==========================================================================

Link to news story: https://www.sciencedaily.com/releases/2020/08/200817123057.htm

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