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AC replacement: Heat of the moment or cool-headed choice?

Author

Listed:
  • Brehm, Paul A.
  • Cassidy, Alecia

Abstract

This paper investigates the determinants of households’ central air conditioner (AC) replacements, one of the larger energy using durable goods that households purchase. We do not find evidence that hot weather or high humidity significantly affect AC replacement rates. However, higher electricity prices and bills increase the likelihood of AC replacement. These findings suggest that clear financial motivators like price incentives could be an effective tool in policymakers’ climate change arsenal going forward.

Suggested Citation

  • Brehm, Paul A. & Cassidy, Alecia, 2025. "AC replacement: Heat of the moment or cool-headed choice?," Journal of Housing Economics, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:jhouse:v:68:y:2025:i:c:s1051137725000270
    DOI: 10.1016/j.jhe.2025.102068
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    More about this item

    Keywords

    Air conditioning replacement; Hot weather; Energy costs; Climate change;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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