Impact of Natural Disasters on Energy Consumption: Evidence From Indian States

Abstract

This study investigates the impact of natural disasters on energy consumption across selected Indian states from 1996 to 2019. Using the system generalized method of moments, we examine whether the frequent occurrence of floods and droughts alters India’s energy demand. Our findings show considerable variation in the relation between natural disasters and energy consumption. Generally, we find that natural disasters, as measured by the magnitude of floods and a drought dummy, have an adverse impact on per capita energy consumption.