The Economics of Cooling
Who Gets to Stay Cool?
How access to cooling divides rich and poor, why heat hits vulnerable groups hardest, and what affordable cooling for all would require.
Heat affects everyone, but not equally.
Who is most exposed
- Outdoor workers: construction workers, street vendors, farm labourers and delivery riders.
- People in informal housing: tin roofs and crowded rooms trap heat.
- The elderly and people with health conditions.
- Women cooking in hot kitchens.
- Children.
Unequal access
- Richer households have ACs, insulated homes and indoor jobs.
- Poorer households may have only fans, or none, and face power cuts.
The feedback loop
ACs pump heat outdoors, slightly warming streets where people without ACs live and work. More AC use can worsen conditions for those without it.
Economic consequences
- Lost income when heat stops outdoor work.
- Health costs from heat illness.
- Lower productivity and learning.
Cooling for all
Ideas include:
- Cool roofs and better housing design for low-income homes.
- Efficient fans and affordable coolers.
- Shaded public spaces and trees.
- Heat-resilient work rules and heat insurance for informal workers.
- Reliable electricity.
Equity in policy
The India Cooling Action Plan emphasises thermal comfort for all, including in affordable housing.
A family in a Delhi slum lives under a tin roof, where indoor temperatures exceed outdoor temperatures on summer afternoons. A cool roof coating and a cheap efficient fan reduce heat noticeably at low cost.
Outdoor workers, the poor, elderly and people in informal housing face the greatest risks.
- Outdoor workers, informal housing residents and the elderly are most exposed.
- Access to cooling is highly unequal.
- AC exhaust can worsen heat for those without ACs.
- Cool roofs, efficient fans, shade and heat-resilient policies support cooling for all.
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