This book examines the effects of daylight-saving time (DST) on hourly electricity load in Pakistan. DST was introduced in Pakistan during the years 2008 and 2009, providing a unique opportunity to conduct a natural experiment and analyze the impact of DST on electricity consumption. The study aims to determine the direct effects of DST by comparing periods before and after DST implementation, while also accounting for potential seasonal bias in the control period due to reduced electricity demand in the fall.
To address this potential bias, the book employs two different identification techniques. The direct approach utilizes a before and after analysis, while the 'equivalent day normalization technique' uses a with and without analysis, utilizing a block of hours as the control period. These two approaches are cross-examined to validate the results.
The application of the standard difference-in-difference (DID) average treatment effects model, using the direct approach, indicates a reduction of 2.9 percent in electricity loads due to DST. On the other hand, the equivalent day normalization approach suggests a 2.3 percent reduction in electricity loads for the years 2008 and 2009 in Pakistan. These reductions imply hourly conservations of 322MWs and 259MWs in electricity loads, respectively.
Additionally, the financial savings resulting from these electricity reductions are estimated to be 38.3 billion RS for end-user consumers. Moreover, in terms of electricity generation, the savings are approximately 20 percent higher than those realized by end electricity users. These findings strongly support the regular implementation of DST in Pakistan.
Furthermore, the study highlights the positive implications of DST, emphasizing the encouragement of electricity conservation and the optimal utilization of natural resources rather than relying solely on artificial appliances. This approach promotes sustainable practices and contributes to the efficient use of energy resources.
In conclusion, the research demonstrates the significant impact of DST on hourly electricity load in Pakistan. The book recommends the ongoing implementation of DST based on the observed benefits, including reduced electricity consumption, substantial financial savings for consumers, and a more sustainable approach to energy usage. These findings can inform policymakers and stakeholders in the energy sector, promoting the adoption of DST as a means of conserving electricity and promoting the responsible utilization of natural resources.