In designing an energy-efficient air-conditioning system that also simultaneously addresses the needs of adequate ventilation and acceptable indoor air quality, several factors begin to play an important role. Among several others, the cooling coil, the fan and the temperature difference between the space and the supply air (commonly known as the Space DeltaT) can be considered to be crucial. For a given space cooling load, the choice of a particular Space DeltaT has an implication on the amount of supply air required, which further has an impact on the performance of the cooling and dehumidifying coil as well as the fan. Inherent in these implications are issues related to energy, ventilation and indoor air quality. This paper investigates these implications and quantifies them by considering a hypothetical building in a tropical climate and subjecting the design to several parametric variations involving different Space DeltaTs for a given space temperature and humidity condition. The total power requirements, comprising additional cooling, reheating and higher fan power, for a design involving a Space DeltaT of 5 degreesC can be as high as a factor of 2.2 of the total power for a design with a Space DeltaT of 8 degreesC. The implication of higher supply air flow rates on duct design is qualitatively discussed. For a given space cooling load and a given Space DeltaT, the implication of increased design ventilation rates to address part-load ventilation requirements can lead to an additional installed cooling capacity of 17.5%. Finally, emerging technologies that are aimed at addressing both energy efficiency and IAQ are discussed. (C) 2004 Elsevier B.V. All rights reserved.