1. The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time
- Author:
- Joan Costa-i-Font, Sarah Fleche, and Ricardo Pagan
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- More than 70 countries around the world currently observe daylight saving time (DST) to reduce energy demand. However, recent studies have shown that DST does not save energy and may actually increase electricity consumption. Furthermore, opponents of DST argue that even a one‐hour time change can have long‐term consequences for individuals. DST transition has been linked to increased risks of car accidents, heart attacks, and depressive symptoms in studies. According to our findings, the spring DST transition has a negative impact on individuals’ welfare, specifically a decrease in life satisfaction. Investigating a broad range of outcomes, we show that this decline in life satisfaction can be explained by a decrease in sleep following the transition and an increase in time pressure, which significantly affect individuals’ physical and emotional health in subsequent days.
- Topic:
- Economic Policy, Time, Well-Being, and Daylight Saving Time
- Political Geography:
- Global Focus