Did the energy efficiency upgrades for air conditioners reduce residential electricity consumption? Evidence from China

Energy efficiency standards for household appliances have been adopted in many countries to mitigate negative externalities, reduce emissions, and save energy. Using Chinese provincial-level panel data from 2008 to 2018, this paper builds a difference-in-difference model to examine the mechanism by which energy-efficiency upgrades in China's air conditioners affect urban household electricity usage. The results show that the upgrades have brought about an obvious reverse effect, with urban household elec-tricity usage increasing rather than decreasing. Reducing the unit costs of energy service has enhanced residents' sensitivity to cooling demand. Driven by the substitution and income effects, urban residents may increase the intensity and frequency of their AC use. Additionally, this reverse effect is heteroge-neously dependent on the family size and urban residents' age structure rather than their educational level. When families are larger and have more children, the reverse effect is more pronounced. This paper's findings provide useful recommendations for policy-makers to formulate policies that are syner-gistic with energy efficiency standards for household appliances. (c) 2022 Elsevier B.V. All rights reserved.

Automated summary

This study examines the mechanism by which energy-efficiency upgrades in China's air conditioners affect urban household electricity usage using Chinese provincial-level panel data. The results show that the upgrades lead to a reverse effect, with an increase in urban household electricity usage. This reverse effect is dependent on factors such as family size and urban residents' age structure.