Research & Projects

This study examines how temperature variations affect time spent on essential vs. non‑essential consumption. It uses ATUS time‑use data combined with NOAA temperature records and applies fixed‑effects regression models to capture the nonlinear effect of temperature. The findings are described below.

• Essential consumption (e.g., groceries, basic goods) shows a U‑shaped pattern:

  • Time spent increases during very hot and very cold days.

• Non‑essential consumption (e.g., dining out, sports events) shows an inverted U‑shape:

  • Peaks at moderate temperatures, declines at extremes.

• Heterogeneity analysis reveals effects differ by:

  • Household income

  • Presence of children

  • Especially pronounced for non‑essential activities.

• Mechanism analysis shows:

  • Essential consumption patterns are linked to time spent at grocery stores, malls, and home.

  • Non‑essential patterns linked to time spent outdoors, at gyms, and in restaurants.