Appliance Standards and Incremental Price of Efficiency

Mandatory labelling and periodic revision of efficiency standards have improved the energy efficiency of room air conditioners in India. The impact of standards on the incremental price of efficiency is not well understood due to fragmented data on retail price and energy efficiency. In this study, the incremental price of efficiency for room air conditioners in India is estimated before and after strengthening of efficiency standards. The results show that there has been a decline in the incremental price of efficiency in 2016–17 as compared to 2012–13 despite strengthening of efficiency standards in 2014.