Cooling the Tropics Sustainably: Evidence from a Choice Experiment on Energy Efficient Air Conditioners in the Philippines

Energy efficiency of home appliances plays a crucial role in climate mitigation policies, especially considering the increasing energy consumption in developing countries. Particularly in countries with high temperatures such as the Philippines, switching to energy efficient air conditioners (ACs) can make a substantial contribution to both climate mitigation and sustainable development. We conducted a field survey among households with a choice experiment in the Philippines. We investigated the attributes that influence the decision to purchase ACs and to understand the variations in preferences among consumers in the tropics. Utilizing primary data with a broad range of socio-economic characteristics, we find that households have higher willingness-to-pay for energy efficient models. Moreover, in terms of preference variability, certain consumer groups such as AC owners, younger age segments, higher income brackets, and those with higher environmental awareness displayed higher willingness-to-pay. Furthermore, our survey reveals the potential for a significant rebound effect in AC use if households purchase an energy efficient model. Therefore, we emphasise the importance of combining the transition to energy efficient ACs with additional policy measures to reduce wastage and consume energy efficiently across other domains, as a country transitions to more sustainable and cleaner energy.