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An economic model of home appliance replacement: application to refrigerator replacement among Japanese households

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  • Jiaxing Wang

    (Aoyama Gakuin University)

  • Shigeru Matsumoto

    (Aoyama Gakuin University)

Abstract

If the pattern of appliance use varies between households, then we expect that appliance replacement cycle also varies between households. Although many studies identified early adopters of new energy-efficient products, few studies have examined households that have been using old energy-inefficient products and how their characteristics are associated with product replacement. In this study, we initially modify a survival function and develop an economic model to evaluate the impact of household characteristics on appliance replacement. We subsequently apply the model in microlevel data analysis from the Survey on Carbon Dioxide Emission from Households obtained from the Ministry of the Environment of Japan. We use information about age distribution of refrigerators (REFs) and examine how family size, household income, and age of household’s head affect the replacement cycle of REFs. Our empirical results reveal that (1) large-sized, (2) high-income, and (3) young households replace REFs more rapidly. These findings suggest that policies that encourage small-sized, elderly, and low-income households to replace old appliances are needed.

Suggested Citation

  • Jiaxing Wang & Shigeru Matsumoto, 2022. "An economic model of home appliance replacement: application to refrigerator replacement among Japanese households," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 29-48, January.
    • Handle: RePEc:spr:envpol:v:24:y:2022:i:1:d:10.1007_s10018-020-00295-2
    DOI: 10.1007/s10018-020-00295-2
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    References listed on IDEAS

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    1. Shigeru Matsumoto & Hajime Sugeta, 2022. "Efficiency Investment and Curtailment Action," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 759-789, November.

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    More about this item

    Keywords

    Microlevel data; Refrigerator; Replacement cycle; Survival model;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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