Determinants of consumers' demand on energy-efficient air conditioners in Saudi Arabia

Consumer preferences detailed surveys are essential for the success of energy efficiency standards and Minimum Energy Performance Standards (MEPS) programs. This article presents the results of a survey that was designed to gather information about the main determinants of consumers demand on small villas air conditioners and their willingness to pay extra money to enjoy the low power consumption of energy efficient AC. The analysis of the surveys revealed that the advantage of low power consumption tends to be the least important factor that affects consumers demand on AC compared to other economic and technological factors. This suggests that energy sector in the Saudi Government should implement short and long terms campaigns to increase the public awareness of the advantages of using energy efficient air conditioners. The survey revealed also that most of the consumers are willing to pay up to 15% extra in the retail price to purchase a more energy efficient AC. This information is very helpful for AC manufacturers and decision makers in the energy sector in Saudi Arabia.