Does Daylight Saving Time Save Energy? Evidence from the Czech Republic

A b s tra c t The recent discussion of the European Parliam ent, member states, and citizens triggered the question whether there is s till a need for bi-annual clock shifting from the perspective of energy savings. Employing the difference-in-differences method on hourly data on electricity consumption between 2006 and 2017, the study con­ cludes th a t daylight saving tim e policy reduces aggregate electricity consumption by 0.35 % in the Czech Republic. Moreover, daylight saving tim e leads to 1% savings on domestic residential electricity consumption. Overall, daylight saving tim e increases electricity consumption in the morning, bu t decreases electricity consumption in the evening by greater amount. We have estimated th a t more than 65 % of to ta l electricity savings attributable to daylight saving tim e arose from effect of the daylight saving tim e on residential electricity consumption.