(Un)certainty in climate change impacts on global energy consumption

Climate change is expected to have an influence on the energy sector, especially on energy demand. For many locations, this change in energy demand is a balance between increase of demand for space cooling and a decrease of space heating demand. We perform a large-scale uncertainty analysis to characterize climate change risk on energy consumption as driven by climate and socioeconomic uncertainty. We combine a dynamic econometric model1 with multiple realizations of temperature projections from all 21 CMIP5 models (from the NASA Earth Exchange Global Daily Downscaled Projections2) under moderate (RCP4.5) and vigorous (RCP8.5) warming. Global spatial population projections for five SSPs are combined with GDP projections to construct scenarios for future energy demand driven by socioeconomic change. Between the climate models, we find a median global increase in climate-related energy demand of around 24% by 2050 under RCP8.5 with an interquartile range of 18-38%. Most climate models agree on increases in energy demand of more than 25% or 50% in tropical regions, the Southern USA and Southern China (see Figure). With respect to socioeconomic scenarios, we find wide variations between the SSPs for the number of people in low-income countries who are exposed to increases in energy demand. Figure attached: Number of models that agree on total climate-related energy consumption to increase or decrease by more than 0, 10, 25 or 50% by 2050 under RCP8.5 and SSP5 as result of the CMIP5 ensemble of temperature projections. References1. De Cian, E. & Sue Wing, I. Global Energy Demand in a Warming Climate. (FEEM, 2016). 2. Thrasher, B., Maurer, E. P., McKellar, C. & Duffy, P. B. Technical Note: Bias correcting climate model simulated daily temperature extremes with quantile mapping. Hydrol Earth Syst Sci 16, 3309-3314 (2012).