Modern cooling: Beyond comfort to economic and personal well-being

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

In the past, air-conditioning in the Philippines was regarded as a hallmark of luxury, an optional appliance for those with the means to pay for it. Yet, as heat levels in Metro Manila continues to climb due to a combination of climate change, population density, and rapid urbanization, the rationality of this longstanding belief is quickly being questioned.

As of this May, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration has warned that several regions of the country like Cavite, Iloilo, and Samar may reach a critical danger level heat index, reaching as high as a sweltering 45°C. Meanwhile, in Metro Manila, the national weather bureau predicted a 40°C heat index from Quezon City to Pasay City.

“During our time, you had trees, you had environments like parks. That kept the temperature livable. But now, we live in a concrete jungle,” Concepcion Industrial Corp. (CIC) Chairman and President Raul Joseph Concepcion told BusinessWorld in an interview.

Traditional architecture, which often utilized natural ventilation and heat-absorbing materials, has been replaced by high-density vertical living and buildings made with glass, steel, and concrete. This structural shift has changed how comfort is experienced in living spaces.

“We live in verticals. Everyone is living in condominiums,” Mr. Concepcion explained. “You can’t open your windows anymore in some of these apartments. And so, the way we’re living, the way the houses are being built, it’s going to impact basically how the weather is affecting us.”

Under these temperatures, individuals may experience heat cramps, heat exhaustion, and even heat stroke upon continued exposure to such conditions.

More than the hazards it poses to public health, however, is how the rising heat is affecting productivity and the general economy. In a landmark study published by the Bangko Sentral ng Pilipinas in 2024, it was found that every degree rise in temperature is directly correlated to a small but significant drop in the overall growth of the Philippine economy.

The study, which specifically examined how temperature variations can affect the nation’s production, business operations, and price levels, found that, on average, the short-run marginal impact of a one-degree Celsius increase in the country’s annual mean temperature reduces aggregate output growth by 0.37 percentage points.

The researchers also noted that during El Niño Southern Oscillation (ENSO) events, the country’s economic growth decreases by an additional 0.47 percentage points. To compare, periods of floods and storms are typically observed to cause a 0.30 percentage point drop.

“Try working without an aircon — impossible. Or even a restaurant without an air-con, or schools, hospitals, working, your sleep. If you look at why it’s a necessity, because it’s not anymore about heat. It’s not about comfort,” Mr. Concepcion said. “Today, it’s all about the well-being of people.”

Cooling as an Economic Imperative

Yet, while data suggests that climate control has become a functional necessity for productivity, changing the mindset of how consumers view air-conditioning remains a challenge.

For instance, Mr. Concepcion estimates that there are over ten million air-conditioners operating in the country on a daily basis, about half of which are over five years old. This number alone costs the Philippine economy untold losses, as many households are averse to upgrading to modern inverter technology which are cheaper to run and more energy efficient.

Mr. Concepcion argues that this operational inefficiency of legacy systems is like how people treat a vintage vehicle: “Ten to fifteen years ago, the design of that system is very different from what it is now. It’s like buying an old car; the way you consume gas, that level, is not so efficient versus a new car today.”

Energy efficiency is largely misunderstood by the populace, Mr. Concepcion noted, and older units, particularly those using fixed-speed compressors and outdated refrigerants, operate with a level of energy waste that creates a massive hidden costs compared to newer models. This is particularly significant in a time of rising electricity costs.

According to CIC’s estimates, a ten-year-old one-horsepower unit might cost approximately P137 to P140 per day to operate. In contrast, a modern inverter unit at current rates costs roughly P78 to P79 per day. By replacing an ancient unit, the annual savings can reach upwards of P15,000 — effectively the price of a brand-new unit.

“Consumers still don’t understand energy ratings. How does that translate into pesos for me? Because one of the things that we’ve seen is when people use their air-conditioner is they’re like, ‘Okay, so how much is this going to cost me?’. I think there’s still a stigma on air-conditioning being something expensive,” Mr. Concepcion said.

Most users remain unconscious of the real costs of their cooling systems until the monthly utility bill arrives — a phenomenon Mr. Concepcion describes as “bill shock,” akin to the roaming charge surprises of early mobile phone era.

To combat this, the industry is moving toward “cost to use” metrics rather than abstract energy ratings. While electricity rates may fluctuate, efficiency remains the only controllable variable for the consumer.

“Generally, by changing your air-con, you have 40%-45% energy savings,” Mr. Concepcion said.

As modern life continues to center around urban and vertical living spaces alongside climate change and rising temperatures, Filipinos can soon no longer afford to ignore the costs of the environment to their physical and economic well-being.

The next generation of intelligent cooling systems are more akin to indoor climate control, not only regulating temperature but also air quality and humidity. Sophisticated systems can now even sense the number of people in a room and adjust based on the average body heat.

Mr. Concepcion noted that they aim their products to move from manual control to a seamless, automated experience that anticipates human needs, such as gradually raising the temperature and humidity before a person wakes up to ensure they feel refreshed.

“Air-con is only one part of a total environment,” Mr. Concepcion said. “It’s not about building better air-conditioners. Our mission is about building better lives.”