Evidence-based Cooling Strategies for a Warming World: Assessing Demand for Energy Efficient Fans in India
Meredith Fowlie, Professor
Agricultural and Resource Economics
Closed. This professor is continuing with Fall 2023 apprentices on this project; no new apprentices needed for Spring 2024.
As global temperatures rise, more and more people are being exposed to extreme heat. Coping with heat-related risks is particularly stressful for households with limited access to cooling technologies such as fans and air conditioners. We have been working in India where it's estimated that over 300 million people are at high risk from extreme heat due to lack of access to cooling.
Fans are the most common cooling appliance used by middle and low-income households in India. Energy-efficient fans, which consume less than half the energy of standard induction fans, are rarely available in rural and peri-urban areas of India where a majority of low-income households live. Demand for energy-efficient appliances in these markets is perceived to be low, and the costs of building out distribution networks, marketing, and sales teams to supply these markets can be prohibitively high.
Our research investigates the conditions under which low-income households in India could be willing and able to purchase energy-efficient BLDC fans. Working closely with India’s Energy Efficiency Services Limited (EESL) and a network of Self-Help Groups (SHGs) in Bihar, we combined a demand-side field experiment with a supply-side intervention that helped local shop owners procure, market, and sell energy-efficient fans. This research was designed to investigate three related lines of inquiry:
First, we are interested in estimating household demand for energy-efficient fans in hard-to-reach rural and peri-urban markets of India. Subsidies for efficient fans could be rationalized on the basis of external (to the household) benefits including avoided environmental damages and, in the case of low-income consumers, avoided supply costs (electricity prices are subsidized for low-income households). We are using data from a field experiment we implemented to estimate demand for efficient fans at different price points.
Second, we are investigating the value of augmenting local warranty support for energy-efficient appliances in rural markets. The standard manufacturers’ warranty is difficult for low-income customers in hard-to-reach markets to access. To augment the manufacturer's warranty, we provided a 3-month local warranty program whereby households could get a free replacement or repair supported by the local shop if technical problems arise. Households are informed about this local warranty support when they are being educated about the study. Communications provide information about how any problems with the fan can be locally and quickly addressed.
Finally, our project piloted interventions on the supply-side of these appliance markets. We designed and piloted a partnership between EESL and a well-established network of rural self-help groups that are well positioned to procure/distribute/support the sale of energy-efficient fans in under-served market segments. If successful, this partnership model could be scaled up across a broad network of SHGs.
Role: An 18-month-long field experiment was recently completed. This fall we will be focused on cleaning and analyzing the data. Tasks include:
Data set construction: Sanity checks on the data we have in hand; some scraping of data from photos and prd files; some quality assurance.
Data analysis: Basic regression analysis of field experiment data.
Synthesis and graphics: Working with researchers to summarize and present data/findings.
Undergraduate students will work closely with the research team and
will be involved in the research process.
Qualifications: Student researchers must be:
* Proficient in R or stata.
* Attentive to detail. Some tasks will involve careful checking of data entered to data collected.
* Able to communicate effectively with team members
Preference will be given to students with prior data scraping or text analysis experience. Interest in energy, environment and/or development economics is a plus!
Hours: 3-5 hrs
Related website: https://www.meredithfowlie.com/
Environmental Issues Social Sciences