Working Paper: NBER ID: w18044
Authors: Lucas W. Davis; Alan Fuchs; Paul J. Gertler
Abstract: 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.
Keywords: energy efficiency; appliance replacement; electricity consumption; Mexico
JEL Codes: D12; H23; Q40; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Refrigerator replacement (L68) | Electricity consumption (L94) |
| Air conditioning replacement (L68) | Electricity consumption (L94) |