Central air conditioning, air pollution and housing location: evidence from Lebanon

Purpose - This study aims to examine the impact of local air pollution on the presence of central air conditioners in apartments in Lebanon. Design/methodology/approach - This study applies a Probit model in a unique data set on apartments’ listings for sale in Lebanon collected by Marrouch and Sayour (2021). The data set includes information about air pollution concentrations, dwellings’ characteristics, geographic features and location characteristics. Findings - This study finds that local air pollution positively and significantly affects the presence of central air conditioning in dwellings. The estimated increase in the probability of having central air conditioning for a one microgram per cubic meter increase in Particulate Matter 2.5 concentration is 6.4%. Research limitations/implications - The data set in this study is cross-sectional and thus does not capture variations over time for the examined variables. Practical implications - The Probit regression approximates an equation that can predict the presence of central air conditioners in dwellings, which might be useful to policymakers. Social implications - The findings suggest that local pollution is a significant factor in household behavior in Lebanon. Originality/value - This paper adds to the scant literature studying the effects of air pollution on the presence of central air conditioning in developing countries. To the best of the authors’ knowledge, this is the first paper to study the impact of air pollution on the presence of central air conditioning in the Middle East and North Africa Region.