Durable goods and long-run electricity demand: Evidence from air conditioner purchase behavior

Journal of Environmental Economics and Management

Volumn 68, Issue 1, 2014, Pages 141-160

  Rapson, David ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

Durable goods; Dynamic discrete choice; Energy demand

Indexed keywords

AIR CONDITIONING; COSTS; ENERGY EFFICIENCY;

DEMAND ELASTICITIES; DISCRETE CHOICE; DURABLE GOODS; ELECTRICITY DEMANDS; ELECTRICITY PRICES; ENERGY DEMANDS; PARAMETER ESTIMATE; STRUCTURAL MODELING;

DOMESTIC APPLIANCES;

EID: 84904561194     PISSN: 00950696     EISSN: 10960449     Source Type: Journal    
DOI: 10.1016/j.jeem.2014.04.003     Document Type: Article

References (35)

1. Auffhammer M., Aroonruengsawat A. Simulating the impacts of climate change, prices and population on Californias residential electricity consumption. Clim. Change 2011, 109:S191-S210.
2. Bento A., Goulder L., Jacobsen M., von Haefen R. Distributional and efficiency impacts of increased U.S. gasoline taxes. Am. Econ. Rev. 2009, 99(3):667-699.
3. Brill, A., Hassett, K., Metcalf, G., 1999. Household Energy Conservation Investment and the Uninformed Consumer Hypothesis. Working Paper. Tufts University.
4. Busse M., Knittel C., Zettelmeyer F. Are consumers myopic? Evidence from new and used car purchases. Am. Econ. Rev. 2013, 103(1):220-256.
5. Dale, L., Fujita, S., 2008. An Analysis of the Price Elasticity of Demand for Household Appliances. Working Paper. Lawrence Berkeley National Laboratory.
6. Dubin J., McFadden D. An econometric analysis of residential electric appliance holdings and consumption. Econometrica 1984, 52(2):345-362.
7. Dubin J., Miedema A., Chandran R. Price effects of energy-efficient technologies. a study of residential demand for heating and cooling. RAND J. Econ. 1986, 17(3):310-325.
8. Erdem T., Keane M.P., Sun B. Brand and quality choice dynamics under price uncertainty. Quant. Mark. Econ. 2005, 1:5-64.
9. Falk I., Mendelsohn R. The economics of controlling stock pollutants: an efficient strategy for greenhouse gases. J. Environ. Econ. Manag. 1993, 25:76-88.
10. Gillingham K., Harding M., Rapson D. Split incentives in residential energy consumption. Energy J. 2012, 33(2):37-62.
11. Golder P., Tellis G. Beyond diffusion. an affordability model of the growth of new consumer durables. J. Forecast. 1998, 17:259-280.
12. Goldberg P. Product differentiation and oligopoly in international markets. the case of the U.S. automobile industry. Econometrica 1995, 63:891-951.
13. Gordon H.S. The economic theory of a common-property resource. the fishery. J. Polit. Econ. 1954, 62(2):124-142.
14. Gowrisankaran, G., Rysman, M., 2009. Dynamics of Consumer Demand for New Durable Consumer Goods. Working Paper.
15. Hausman J. Individual discount rates and the purchase and utilization of energy-using durables. Bell J. Econ. 1979, 10(1):33-54.
16. Hendel I., Nevo A. Measuring the implications of sales and consumer stockpiling behavior. Econometrica 2006, 74(6):1637-1673.
17. Hotelling H. The economics of exhaustible resource extraction. J. Polit. Econ. 1931, 29(2):137-175.
18. Ito K. How do Consumers Respond to Non-Linear Pricing? Evidence from Household Electricity Demand. Am. Econ. Rev. 2014, 104(2):537-563.
19. Jaffe A., Stavins R. Dynamic incentives of environmental regulations. the effects of alternate policy instruments on technology diffusion. J. Environ. Econ. Manag. 1995, 29:S43-S63.
20. Jessoe K., Rapson D. Knowledge is (Less) Power: Experimental Evidence from Residential Energy Use. Am. Econ. Rev. 2014, 104(4):1417-1438.
21. Keeler E., Spence M., Zeckhauser R. The optimal control of pollution. J. Econ. Theory 1972, 4:19-34.
22. Lin C. Strategic decision-making with information and extraction externalities: A structural model of the multi-stage investment timing game in offshore petroleum production. Rev. Econ. Stat. 2013, 95(5):1601-1621.
23. Magnac T., Thesmar D. Identifying Dynamic Discrete Decision Processes. Econometrica 2002, 70(2):801-816.
24. Manning W. The logged dependent variable, heteroscedasticity, and the retransformation problem. J. Health Econ. 1998, 17:283-295.
25. Mansur E., Mendelsohn R., Morrison W. Climate change adaptation. a study of fuel choice and consumption in the US energy sector. J. Environ. Econ. Manag. 2008, 55(2):175-193.
26. Melnikov, O., 2001. Demand for Differentiated Durable Products: The Case of the U.S. Computer Printer Industry. Working Paper.
27. Nordhaus W. To slow or not to slow. the economics of the greenhouse effect. Econ. J. 1991, 101(407):920-937.
28. Provencher B., Bishop R. An estimable dynamic model of recreation behavior with an application to great lakes angling. J. Environ. Econ. Manag. 1997, 33:107-127.
29. Reiss P., White M. Household electricity demand revisited. Rev. Econ. Stud. 2005, 72:853-883.
30. Rust J. Optimal replacement of GMC bus engines. an empirical model of Harold Zurcher. Econometrica 1987, 55:999-1033.
31. Schiraldi P. Automobile replacement. a dynamic structural approach. RAND J. Econ. 2011, 42(2):266-291.
32. Shin J. Perception of price when price information is costly. evidence from residential electricity demand. Rev. Econ. Stat. 1985, 67(4):591-598.
33. Smith M. State dependence and heterogeneity in fishing location choice. J. Environ. Econ. Manag. 2005, 50:319-340.
34. Smith M., Sanchirico J., Wilen J. The economics of spatial-dynamic processes. applications to renewable resources. J. Environ. Econ. Manag. 2009, 57:104-121.
35. Tauchen G. Finite state Markov-chain approximations to univariate and vector autoregressions. Econ. Lett. 1986, 20:177-181.