The efficacy of UNDP-GEF s BRESL program on energy efficient fans market: A behavioral analysis

Transcription

1 The efficacy of UNDP-GEF s BRESL program on energy efficient fans market: A behavioral analysis Dr. Humera Farah, Associate Professor Department of Earth and Environmental Sciences Bahria Universit y, Islamabad, Pakistan farahhz b@ gmail. com The Preamble a. Energy efficiency is a cost effective measure to combat climate change with transforming markets on sustainability, reducing needs for new energy sources. b. Asia accounts for 28% of global energy needs, with a growth rate of 3.7%. c. The growing energy need enhances the demand for more electrical appliances as well, leading to more GHG emissions due to fossil fuels based energy. d. To cut down energy gap between supply and demand of power in Asia, residential and commercial energy efficiency and better equipment is essential. 1

2 Barrier Removal to the Cost Effective Development & Implementation Energy Efficiency Standards and Labeling (BRESL) Project United Nations Development Program (UNDP) and Global Environment Facility (GEF) jointly launched for five Asian developing countries, Pakistan, China, Vietnam, Bangladesh, Thailand. The project aims to aid: the manufacture, sales and usage of Six energy efficient electrical appliances: Fans, Motors, Ballasts, Air conditioners, CFLs and Refrigerators through regional cooperation. BRESL Project aims To aid: manufacture sales and usage of Six energy efficient electrical appliances: Fans, motors, ballasts, air conditioners, CFLs refrigerators through regional cooperation. Also, it provides assistance to each participating country, for establishing or expanding its Energy Standards and Labeling (ES&L) program. 2

3 BRESL Project - Pakistan 1. Pakistan selected as lead country on fans through BRESL. 2. Pakistan has a substantial electric fan manufacturing industry for both local and export market. a. Current global share of Pakistan s fans: ~34 million $ b. Curent Production 8 Million Fans 3. The government has prioritized to develop and implement ES&L for electric fans through BRESL program. 4. ES&L will reduce energy consumption by 10% in Pakistan when completed. 3

4 The Study Understand the effectiveness of implementation of BRESL via behavioral analysis of stakeholders in market of energy efficient household ceiling fans 4

5 Fan market: Stakeholders a. Federal Govt. b. NGOs Nexus c. Fan industry e. Consumers d. Retailers The Tools 1. Field survey/questionnaire 2. Interviews Sample: a. National Project Coordinator: ENERCON/BRESL b. CEO - The Network : Protection of consumer rights c. Fan Industry: 2 (Industrial hub of the country, Gujarat) d. Retailer - Hamdan Electronics e. Consumers: 100 I. 80 households (Two residential sectors in Islamabad) II. 20 commercial 5

6 The Analysis a. Federal Government 1.ENERCON: National Energy Conservation authority Promulgates comparative labeling Voluntary, then mandatory 2. Pakistan Standards Quality Control Authority (PSQCA) Approves a. Federal Government i. Awareness workshop on energy efficiency standards and labeling regime for fan industry ii. iii. Focused group discussion/workshop on energy efficiency standards and labeling regime (Policy Context) Launching of Minimum Energy Performance Standards (MEPS) and energy labeling for electric fans 6

7 Pakistan Energy Label b. The Net Work a. Education and awareness of consumers very important: Consumer rights b. First Data Government Solution (FDGS): Consumer groups emergence of new ideas and solutions effective and powerful qualitative approach for discussion. c. Consumer involvement in decision making for policies, enforcement 7

8 c. Fan industry: Tiers Large >300 employees uses mostly imported raw material Typical voltage for a ceiling fan: W Small < 30 employees uses mostly local raw material (often recyclable metals) Typical voltage for a ceiling fan: 120 W Manufacturing Process of a Ceiling Fan Material Casting Assembly Process Overheads Marketing 8

9 c. Fan industry: 1. Investment for quality raw material for an energy efficient appliance Use of copper wiring Electric steel sheet 2. Positive purchasing response from consumers d. The Retailer a. Consumer purchase s choice depends on price and performance of a product b. Retailers unaware of energy efficiency labelling of appliances 9

10 e. The consumers Ceiling Fan Purchase Percentage of Response Promotion/sale/ads For better technology/quality Replace when needed 0 Product Guidebook 50 Percentage of Response

11 Reliability of Energy Labeling 50 Percentage of Response Yes No Don't know 0 Willingness to Purchase Energy Efficient Fans Percentage of Response Yes No

12 In conclusion i. Financial issues for Tier II fan manufacturers. ii. iii. iv. Lack of consumers awareness among retailers, consumers for policies/novice technology. If available, consumers willing to convert to energyefficient ceiling fans despite high cost. Government policies need some revisions to accommodate/incorporate solutions for energy efficient appliance. Acknowledgement The assistance provided by National Energy Conservation Center (ENERCON), Islamabad and Pakistan Electric Fan Manufacturing Association (PEFMA). Travel grant awarded by Higher Education Commission of Pakistan to attend this conference. 12

13 Bibliography 1. Brounen, D., Kok, N., Quigley, J.M., Energy literacy, awareness and conservation behavior of residential households, vol. 38, p Chaudhry, J., The National Energy Conservation Centre, Project BRESL (Barrier Removal to the cost-effective development and implementation of Energy efficiency Standards and Labeling), Working on Sustainable Development through Conservation and Efficient use of Energy Resources. 3. Haider, S.S., An Empirical Analysis of electricity demand in Pakistan, International Journal of Energy Economics and Policy, vol. 4, p Iqbal, N., The Network for Consumer Protection, The Network improving the performance of Energy sector with the active involvement of consumers and launch campaigns for Energy Conservation. 5. Mahilia, M.I., Masjuki, H.H., Taha, F.M., Rahim, N.A., Saidur, R., Energy labeling for electric fans in Malaysia, Energy Policy, vol. 33, p Bibliography (contd.) 6. Murray, A.G., Mills, B.F., Read the label: Energy Star appliances label awareness and uptake among U.S. consumers, vol. 33, p Mills, B., Schleich, J., The driving Energy Efficient Appliance Label awareness and purchase propensity, Energy Policy, vol. 38, p Mansoor, H., Retailer (Hamdan Electronics), Rawalpindi, Pakistan. 9. Shen, J., Saijo, T., The Energy Efficient Label alter consumers purchasing decisions, A latent class approach based on a stated choice experiment in Shanghai, vol. 90, p Wijaya, M.E., Tezuka, T., Measures for improving the adoption of higher efficiency appliances in Indonesian households: An analysis of lifetime use and decision-making in the purchase of electrical appliances, vol. 112, p