Cash for Coolers / Lucas W. Davis, Alan Fuchs, Paul J. Gertler.

Format:

Book

Author/Creator:

Davis, Lucas W.

Contributor:

Fuchs, Alan.

Gertler, Paul J.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18044.

NBER working paper series no. w18044

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

This paper examines a large-scale appliance replacement program in Mexico that since 2009 has helped 1.5 million households replace their old refrigerators and air-conditioners with energy-efficient models. Using household-level electric billing records from the population of Mexican residential customers we find that refrigerator replacement reduces electricity consumption by an average of 11 kilowatt hours per month, about a 7% decrease. We find that air conditioning replacement, in contrast, increases electricity consumption by an average of 6 kilowatt hours per month, with larger increases during the summer. To put these results in context we present a simple conceptual framework in which energy-efficient durable goods cost less to operate, so households use them more. This behavioral response, sometimes called the "rebound" effect, is important for air-conditioners, but not important for refrigerators.

Notes:

May 2012.

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