Climate change is around us today and will affect human life in many ways. More frequent\nextreme weather events raise mortality and car accident rates, global warming leads to longer growing\nseasons for crops, which may change farmersâ?? crop choices, and the relationship between energy\ndemand in residential buildings and weather is widely investigated. In this paper, we focus on the\nimpact of weather on energy consumption, in particular, gasoline consumption through the more\nfrequent use of both vehicles themselves and the air conditioner of the vehicle that decreases fuel\neconomy, which has not been paid enough attention in the literature. We estimate the relationship\nbetween fuel consumption and weather using unique U.S. panel data. We find that hot days increase\ngasoline consumption, but in contrast to the results of residential energy consumption literature,\nthere is no statistically significant effect on cold weather. With climate prediction data from General\nCirculation Models (GCMs), we simulate the impact of climate change on fuel energy consumption.\nThe results show that the fuel consumption in the transportation sector may increase by up to 4%\nunder the â??business-as-usualâ? (RCP 8.5) scenario. Also, climate change has heterogeneous impacts\nacross the continental United States.
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