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Cooling China: The Weather Dependence of Air Conditioner Adoption

Author

Listed:
  • Maximilian Auffhammer

    (Agricultural and Resource Economics Department, University of California, Berkeley. Berkeley,CA 94720-3310, USA; National Bureau of Economic Research (NBER))

Abstract

One of the major adaptation mechanisms to climate change is increased demand for cooling via the air conditioning of indoor environments. China¡¯s demand for air conditioners has displayed explosive growth since 1995. This paper provides estimates of the income and short run weather sensitivity of air conditioner adoption across urban areas for 29 Chinese provincial entities. We show that the adoption decision displays significant income and weather sensitivity in the short run, with adoption being higher the year following a hot summer.

Suggested Citation

  • Maximilian Auffhammer, 2014. "Cooling China: The Weather Dependence of Air Conditioner Adoption," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 9(1), pages 70-84, March.
    • Handle: RePEc:fec:journl:v:9:y:2014:i:1:p:70-84
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-003-014-0005-5
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    Citations

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    Cited by:

    1. Li, Yating & Fei, Yinxin & Zhang, Xiao-Bing & Qin, Ping, 2019. "Household appliance ownership and income inequality: Evidence from micro data in China," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    2. Auffhammer, Maximilian & Mansur, Erin T., 2014. "Measuring climatic impacts on energy consumption: A review of the empirical literature," Energy Economics, Elsevier, vol. 46(C), pages 522-530.
    3. Garg, Teevrat & Gibson, Matthew & Sun, Fanglin, 2020. "Extreme temperatures and time use in China," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 309-324.
    4. Andreas Hefti & Peiyao Shen & King King Li, 2021. "Igniting deliberation in high stake decisions: a field study," ECON - Working Papers 378, Department of Economics - University of Zurich.
    5. Shaun McRae, 2023. "Residential Electricity Consumption and Adaptation to Climate Change by Colombian Households," Economics of Disasters and Climate Change, Springer, vol. 7(2), pages 253-279, July.
    6. Cuihui Xia & Tandong Yao & Weicai Wang & Wentao Hu, 2022. "Effect of Climate on Residential Electricity Consumption: A Data-Driven Approach," Energies, MDPI, vol. 15(9), pages 1-20, May.
    7. Jinpeng Liu & Hao Yang & Delin Wei & Xiaohua Song, 2021. "Time Distribution Simulation of Household Power Load Based on Travel Chains and Monte Carlo–A Study of Beijing in Summer," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    8. Du, Kerui & Yu, Ying & Wei, Chu, 2020. "Climatic impact on China's residential electricity consumption: Does the income level matter?," China Economic Review, Elsevier, vol. 63(C).
    9. Ahmad Syafiq Kamil & Lindri Setyaningrum & Ade Chandra Lesmana & Megawati Suharsono Putri & Syandi Negara & Heni Susiati & Yohanes Dwi Anggoro, 2023. "Regional Impact Analysis of Carbon Tax Implementation on Indonesia s Coal Power Plant with Interregional Input-output Method," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 149-157, May.
    10. Yu, Xiumei & Lei, Xiaoyan & Wang, Min, 2019. "Temperature effects on mortality and household adaptation: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 195-212.
    11. Teresa Randazzo & Filippo Pavanello & Enrica De Cian, 2021. "Adaptation to climate change: air-conditioning and the role of remittances," Working Papers 2021:, Department of Economics, University of Venice "Ca' Foscari".
    12. Meixuan Teng & Hua Liao & Paul J. Burke & Tianqi Chen & Chen Zhang, 2022. "Adaptive responses: the effects of temperature levels on residential electricity use in China," Climatic Change, Springer, vol. 172(3), pages 1-20, June.
    13. Enrica De Cian & Filippo Pavanello & Teresa Randazzo & Malcolm Mistry & Marinella Davide, 2019. "Does climate influence households' thermal comfort decisions?," Working Papers 2019:02, Department of Economics, University of Venice "Ca' Foscari".
    14. Tan-Soo, Jie-Sheng & Li, Jun & Qin, Ping, 2023. "Individuals' and households' climate adaptation and mitigation behaviors: A systematic review," China Economic Review, Elsevier, vol. 77(C).
    15. Tanya Suhoy & Maayan Tropper-Wachtel, 2021. "Global Warming Effects on Electricity Demand in Israel," Bank of Israel Working Papers 2021.17, Bank of Israel.
    16. Hanna Krings, 2015. "International Trade in Second-hand Electronic Goods and the Resulting Global Rebound Effect," MAGKS Papers on Economics 201538, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    17. Chen, Yanran & Sun, Ruochen & Chen, Xi & Qin, Xuezheng, 2023. "Does Extreme Temperature Exposure Take a Toll on Mental Health? Evidence from the China Health and Retirement Longitudinal Study," IZA Discussion Papers 16092, Institute of Labor Economics (IZA).
    18. Enrica Cian & Ian Sue Wing, 2019. "Global Energy Consumption in a Warming Climate," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 365-410, February.
    19. Jian Cui & Lunyu Xie & Xinye Zheng, 2023. "Climate change, air conditioning, and urbanization—evidence from daily household electricity consumption data in China," Climatic Change, Springer, vol. 176(8), pages 1-19, August.
    20. Li, Jianglong & Yang, Lisha & Long, Houyin, 2018. "Climatic impacts on energy consumption: Intensive and extensive margins," Energy Economics, Elsevier, vol. 71(C), pages 332-343.
    21. Joshua Graff Zivin & Matthew E. Kahn, 2016. "Industrial Productivity in a Hotter World: The Aggregate Implications of Heterogeneous Firm Investment in Air Conditioning," NBER Working Papers 22962, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    climate change; air conditioning; weather;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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