Energy Efficiency in Saint Lucia

Cassidy DeMos, Lena Forman, Abby Kerin, Meryl Klein, Travis Reynolds, Alanna Toner

Overview

Project GoalsObjectivesPrevious WorkHypothesesMethodsResultsPSARecommendations

Project GoalsTo reduce energy consumption in St. Lucia through the promotion of energy efficient practices

EconomicEnvironmental

Objectives

Engage in consumer research Survey

Promote energy-saver light bulbs through cost subsidization

Coupon Distribution

Promote energy-saver light bulbs through consumer education

Public Service Announcement (PSA)

Survey Background263 surveys gathered in 2006

Price respondents were willing to pay was EC$5

Barriers to purchasing energy-saver bulbs

Reynolds, T., Murray, B., & Neil, H. (2006b). Energy Efficiency in Saint Lucia Final Report. CDAE 195 Final Report: University of Vermont.

HypothesesH1: As education levels increase there will

be a higher self-reported willingness to pay for energy-saver bulbs

H2: As knowledge of energy efficiency increases, it will lead to a higher self-reported willingness to pay

H3: As price of energy-saver bulbs is reduced through coupons the number of energy-saver bulbs purchased by Saint Lucian consumers will increase

Survey Methods4 January – 10 January

Castries, Rodney Bay, Soufriere, Vieux Fort

530 consumer surveysPersonal interviewsIntercept surveys

H1 Results – Education vs Willingness-to-Pay

On average consumers only want to pay EC$11 regardless of education

Those with no education were only willing to pay an average of EC$7.50

H2 Results – Knowledge vs Willingness to Pay

People familiar with energy efficiency were on average willing to pay EC$1.50 more for energy-saver bulbs than those who were not familiar (P-value: 0.033)

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0-999 1000-1999

2000-2999

3000-3999

4000-4999

5000-5999

6000+

Household Income per month (EC$)

Pri

ceIncreased income was not associated with increased willingness to pay

H3 – Bulb price vs purchasing patterns

Survey Results: Barriers to Bulb Purchase

lack of knowledge34%

cost39%

availability3%

quality 4%

other10%

no barriers10%

Coupon Distribution

URECA GrantDistributed with surveysDiscounts of 10%, 25%, 50%, 75%, 90% offFree bulbs

Coupon Distribution Results

Preliminary results23 redeemed • 8 – 90% off• 6 – 75% off• 7 – 50% off• 1 – 25% off• 1 – 10% off

ConclusionsConsumers are generally positive toward energy-saver bulbsConsumers are generally not aware of energy efficient appliancesEducation is positively related to a consumers willingness to pay more for energy-saver bulbsIncreased knowledge about energy efficiency leads to a willingness to pay more for energy-saver bulbsIncome does not effect consumer’s willingness to pay

Subsidies to decrease priceIncrease education

Public Service Announcement (PSA)

Lindsley PhilbertElectrical Engineer Local consumer answering

survey questions

“I purchased four energy-saver bulbs and I saw a big decrease in

my electricity bill.”- Castries resident

95,000 tons of oil were imported at a cost of $25 million

30% used to generate electricity¹

Domestic consumption of electricity was 35.7%

3.2% increase from 2004²

¹ Ministry of Physical Development, Environment, and Housing May 2003. Saint Lucia Energy Sector Policy and Strategy.² Ministry of Finance International Financial Services and Economic Affairs 2006. 2005 Economic and Social Review.

Policy Recommendations

Increased Energy Week Publicity School ProgramsReduce/eliminate duties and taxes on energy efficient productsSubsidize prices of energy efficient products

Future Recommendations

Educational workshops with Saint Lucian residentsAnalysis of available energy efficient appliances and consumer’s knowledge of them

Project PartnersPhilip McClauren Ministry of Consumer AffairsJohn Worrell St. Louis Ministry of Agriculture & ForestryGuillaume Simon Ministry of Consumer AffairsFabian Jules Ministry of Agriculture & Forestry

Lindsley PhilbertSir Arthur Lewis Community CollegeJohnson’s Hardware (Castries & Rodney Bay)DuBoulay’s Building Supply (Soufriere)Builder’s Choice Limited (Vieux Fort)

Any Questions?