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

Paul A. Brehm and Alecia Cassidy

Journal of Housing Economics, 2025, vol. 68, issue C

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.

Keywords: Air conditioning replacement; Hot weather; Energy costs; Climate change (search for similar items in EconPapers)
JEL-codes: H54 Q41 Q54 R22 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:68:y:2025:i:c:s1051137725000270

DOI: 10.1016/j.jhe.2025.102068

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