The energy sector is sensitive to changing weather patterns and Pakistan is one of those countries where temperature rise induced by climate change is expected to be above the world average. In this backdrop the present study aims at finding the impact of climate change on electricity demand in Pakistan at the regional and national level. Using monthly data on temperatures to find heating and cooling degree days, the relationship between monthly electricity demand and temperature is explored which is then used to find the impact of projected climate change on electricity demand. The results suggest surging peak loads in summer season due to climatic effect which calls for capacity instalments over and above that needed to cater to rise in electricity demand attributable to economic growth. JEL Classification: Q47, Q54 Keywords: Energy, Climate Change, Electricity Demand, Degree Days, Pakistan

Oil prices not only affect the agricultural commodity directly but also indirectly through different channels. However, among these channels, the most important is the channel of exchange rate. The reason for putting emphasis on the mediating role of exchange rate between the oil prices and food prices nexus is that the oilimporting counties like Pakistan pay their import bills in terms of foreign currency in the international market which as a result escalates the demand for foreign currency in oil-importing countries. This study has analyzed the indirect influence of oil prices on food prices via exchange rate. We developed a Composite Index (CI) of the agricultural commodity prices including wheat, cotton, rice, gram, sugar cane, and maize. This index is generated by using Principal Component Analysis (PCA). Further, to construct our econometric model, we used mediation approach by applying Seemingly Unrelated Regression (SUR) model. The results indicate a positive relationship between exchange rate and prices of oil. We also found the same relationship between exchange rate and the food prices. In addition to this, we witnessed positive effects of prices of oil on the food prices in the presence of exchange rate. Our study confirms that exchange rate partially mediates between the nexus of oil prices and food prices. Our analysis explains the impact of oil price on agricultural commodity prices through the channel of exchange rate by using time series data of Pakistan.

Out of the climatic variables such as temperature, humidity, precipitation, cloud cover, etc., electricity demand has been found most responsive to changes in temperature [Parkpoom and Harrison (2008); Al-Hamadi and Soliman (2005); Hor, et al. (2005)]. According to National Aeronautics and Space Administration, the decade from 2001 to 2010 was the warmest worldwide while the rise in surface temperatures of South Asia region by the end of the century is projected around 3.3oC average annually (IPCC);1 not only are the average temperatures rising but the range of extreme temperatures is also widening. Increase in temperatures can affect human lives significantly; the present study focusses on examining the impact of climate change on demand for electricity in Pakistan.