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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 electricity 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 heterogeneously 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 synergistic with energy efficiency standards for household appliances. [ABSTRACT FROM AUTHOR]

Under the background of global warming, the world is experiencing many extreme climate events. The temperature fluctuation associated with climate change is often considered as a primary driving force of electricity consumption. To better explore the impact of temperature on electricity consumption, this paper aims to analyze the question from the perspective of income growth, i.e., the moderating effect of income growth on the response of urban residential electricity to temperature changes. Using the unbalanced panel data of 23 cities in the Yangtze River Delta Urban Agglomeration from 2004 to 2015, we construct the response model of residential electricity consumption to income growth, heating degree days, cooling degree days and their interactions. The results show that heating demand, cooling demand and income growth significantly increase residential energy consumption. However, urban residential disposable income growth weakens the positive effect of heating demand and cooling demand on residential electricity consumption. Because, urban residents have obvious demand for improving indoor heating comfort and cooling comfort, the moderating effect of income is shown as the crowding-out effect. Residents may adjust the structure of heating energy consumption (from electricity to natural gas) and upgrade their electrical equipment to high energy efficiency equipment, thereby reducing residential electricity consumption. This study also indicates that urban residential energy consumption is very sensitive to changes in permanent populations. The main contribution of this study is proposing the hypothesis of the negative moderating effect of income growth on temperature changes and expanding the response model of residential electricity consumption to temperature changes. Finally, this paper also proposes the adaptive strategies and policy implications for climate change. [ABSTRACT FROM AUTHOR]