REVIEW OF RELATED STUDIES

REVIEW OF FOREIGN STUDIES

In the study Relationship of Socioeconomic Status and Electricity Consumption,

Rebecca Herrin, conducted at Florida, states the relationship of socioeconomic class to

electrical power consumption. According to Herrin, our electric power consumption

behavior is affected by our socioeconomic status. Using different qualities of electrical

devices in order to minimize or maximize utility of power in order to save energy. The

higher class tends to purchase and use materials that has long term lifespan compared

to those in lower class that tends to use materials that is easily replaceable. Also, types

of illumination devices are discussed such as Compact Fluorescent Lamp (CFL) and

Light Emitting Diodes (LEDs). Household in higher class utilizes energy efficient devices

for illumination such as LEDs opposed to incandescent bulbs (Herrin, 2013).

In another study, according to Paul R. Ehrlich a professor Population Studies and

Professor of Biological Sciences at Stanford University in the United States, on his

report The Conference on Population and Development. Ehrlich states that:

An average rich-nation citizen uses 7.4 kilowatts of energy in

1990… The average citizen of a poor nation uses only 1kW. It was said
that there were 1.2 billion people in the rich nations, which result to an 8.9
terawatts in total consumption, whilst poor nations sum to about 4.1 TW
only. The relatively small population of rich people therefore accounts for
roughly two-thirds of global environmental destruction, as measured by
energy use. From this perspective, the most important population problem
is overpopulation in the industrialized nations. (www.dieoff.org, n.d)
 In addition to the statement of Ehrlich, in the journal entitled Here’s Why

Developing Countries Will Consume 65% of the World’s Energy by 2040 by Todd

Woody, an environmental and techonology based journalist in California. Woody stated

“…energy consumption per person is predicted to rise as well in the developing

countries as they grow richer and their citizens covet cars, better climate control, and

power-hogging devices” (www.theatlantic.com, December 3, 2013, par 5).

REVIEW OF LOCALSTUDIES

In the Philippines, there are many studies in socioeconomic classification or

sometimes called stratification. According to Social Weather Stations (2013), the annual

average income is classified in Class A and B with Php 1,857,000.00, Class C (9%) with

Php 603,000.00, Class D (60%) with Php 191,000.00, and Class E (30%) with Php

206,000.00 annual average income.

In another study conducted by Marketing and Opinion Research Society of the

Philippines (MORES), the development of socioeconomic classification used by market

research agencies. The result was:

…1SEC… nine economic clusters … based on expenditure pattern

of households… the least spending households are grouped under Cluster
1 while the highest is… under Cluster 9… (45%) of Philippine households
belong to the three least spending [Cluster 1-3]… while only (20%) belong
to top 3 [Cluster 7-9]… (2012)

The ability to spend of different socioeconomic classes is a factor on their ways

of lifestyle and the amount of electrical energy consumed in their households. In the

thesis Short-run Demand for Residential Electricity in Rural Electric Cooperatives

Franchise Areas, Rolando A. Danao (2001) has explained that electricity as a common
need and a residential demand, the effects of budget and price based from purchasing

power affects power consumption. In addition, Danao had also elaborated that

electricity consumption is affected greatly by the size of the household. An average of

13.8% on electricity consumption is said to rise per additional member.

Electricity as a common source of energy had been used by the majority.

According to Danao, since 1989, electricity is commonly used in households by only

65% of the population and by 1994, it is said to be 84% of the households, the growth of

residential electricity consumption grew at an average of 9.4%. In support to what

Danao stated, the Household Energy Consumption Survey (HECS) conducted last

2011, despite numerous sources of energy, “…electricity remains [since 2004 survey]

as the most common source of energy used by households in the Philippines….”

(Philippine Statistics Authority, 2013). One cannot say that an individual residential

households does not utilize electricity for it is the most common source of energy.

As a common source of energy, the Magna carta for residential electricity

consumers, Energy Regulatory Commission (ERC) stresses the basic rights of

residential electric users towards quality electric power and their obligations towards the

electric companies (2004). In accordance to the right of each residential consumers to

have electricity, the government regulates and provides guidelines in order to ensure

quality, safe, and sustainable source of energy. In Republic Act No. 9136, electric power

industry reform is promulgated to ensure quality, affordable, and reliable electrification

of the country, with transparent and reasonable prices to achieve greater economic

efficiency (p.1, 2001).

 The different residential demand of different socioeconomic class divisions also

lead to the way electricity is being utilized. The power consumption of different class

varies on their ability to pay. Electricity is being utilized most in illumination, according to

HECS:

In 2011, electricity is mostly used for lighting purposes with 74

percent of households reporting the use of electricity for such purpose…In
the 2004 round of the survey, electricity was used by about 78 percent of
households… (Philippine Statistics Authority, 2013)

Different socioeconomic classes can afford different illumination devices, this

illumination varies from Light Emitting Diodes (LEDs) up to Compact Fluorescent Lamp

(CFL). Due to the availability and affordability of CFL, it is widely used despite its high

power consumption compared to LEDs. According to HECS:

Regarding the types of lamps used in 2011, Compact Fluorescent

Lamp (CFL) was the most popular with 77 percent of households using
electricity for lighting. This type of lamp was most common…regardless
the income of the family. (Philippine Statistics Authority, 2013)

The utilization of electricity is not only limited to illumination but it includes a

broad range of usage. It is true that some can afford luxury devices and others can

afford more luxurious devices than the other. Danao elaborated that electricity is a

product for services such as lighting, entertainment, cooling, and other electrical

devices. Household electricity consumption would then be influenced by the variation of

household appliances present and their utilization (2001). In addition, HECS stated that

other utilization of electricity aside from lighting were “…for ironic clothes…, laundry…,

cooking and food preparation…, computer activity…, water heating and bathing…, and

water pumping….” (Philippine Statistics Authority, 2013). As a commodity for luxury

HECS added:
 Electricity is also popularly used for recreation and space cooling…
for recreation,… used electricity for TV viewing,… for their radio/tape
recorder/stereo,… for their VCR/karaoke/videoke. At least one in three
households with an average monthly income of Php 10,000.00 or more…
for their VCR/karaoke/videoke…. (Philippine Statistics Authority, 2013)

Despite all factors leading to the increase of electrical power consumption,

Danao stated that ages of end users affects power consumption and an increase in year

age results to a 0.4% increase in electricity consumption, despite the results, Danao still

put age as a variable not significant enough to power consumption contribution (2011).

Also, education of electrical devices and utilization of efficient low power devices lowers

electrical power consumption.

Relevance to Study

The reviews of foreign and local literature presented above included profile of

respondents, their socioeconomic classification, electricity as a common source of

energy, and the utilization of electricity according to classes. In this paper, the

researchers includes profiles of respondents in the survey, their electric power

consumption, and different electrical devices used. Related studies such as the effect of

age in electrical power consumption is not included, only the electrical devices being

used. The research is to prove difference in power consumption in different chosen

socioeconomic classes located here in Cagayan de Oro.

THEORITICAL FRAMEWORK

The researchers use the survey-questionnaire method for profiling, gathering

information and listed electrical devices of each individual households for comparison.

In the survey-questionnaire, technical data may be different for there may be different

interpretations of the questions. In this method, the profiling of the respondents is to

determine the socioeconomic classification where they belongs.

This research is a result in the observation of the researcher towards average

power consumption of each residential households for improvement of the designs to be

done within the municipality.

(P.S. Paki improve lamang lalo ang last paragraph)