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

Authors

Paul Brehm, Oberlin College
Alecia Cassidy

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.

Repository Citation

Brehm, Paul A., and Alecia Cassidy. 2025. "AC replacement: Heat of the moment or cool-headed choice?" Journal of Housing Economics 68: 102068.

Publisher

Elsevier

Publication Date

6-1-2025

Publication Title

Journal of Housing Economics

Department

Economics

Document Type

Article

DOI

https://doi.org/10.1016/j.jhe.2025.102068

Keywords

Air conditioning replacement, Hot weather, Energy costs, Climate change

Language

English

Format

text