Daylight time and energy: Evidence from an Australian experiment

Several countries are considering using daylight saving time (DST) as a tool for energy conservation and reduction of greenhouse gas emissions, and the United States extended DST in 2007 with the goal of reducing electricity consumption. This paper assesses DSTʹs impact on electricity demand by examining a quasi-experiment in which parts of Australia extended DST in 2000 to facilitate the Sydney Olympics. Using detailed panel data and a difference-in-difference-in-difference framework, we show that the extension did not reduce overall electricity consumption, but did cause a substantial intraday shift in demand consistent with activity patterns that are tied to the clock rather than sunrise and sunset.