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Contents Introduction

This study examines the impact of extreme temperatures on residential electricity consumption in Japan. Using a panel fixed effect model, we find a U–shaped relationship between temperatures and electricity usage, with colder climates showing greater sensitivity to cold temperatures and warmer climates exhibiting increased consumption during hot spells. Our findings highlight the importance of considering regional heterogeneity in energy policy formulation under climate change. Transitioning to renewable energy sources may mitigate the environmental impact, but upfront costs pose a barrier. Addressing energy poverty and promoting energy efficiency are crucial strategies, requiring concerted efforts from policymakers and stakeholders.