Energy Efficiency Policies in India: Implications for Climate Change Mitigation

The role of energy efficiency in meeting domestic energy challenges and global environmental issues is well acknowledged. The need for policy intervention to maximize the potential of energy efficiency that can be realized is also widely accepted. The impact of the energy efficiency policies determines the extent to which they address the barriers to adoption of efficiency measures. Evaluating the impact of policy instruments is crucial to increase their effectiveness and maximize their energy and emission reduction potential. The data to estimate the impact of a policy intervention are often disaggregated, particularly in developing countries. The policy interventions adopted in India to increase energy efficiency include information programs, regulations, financial incentives, and other market-oriented mechanisms. The standards and labeling program is one the most important energy efficiency policies in India. It has been found that the program has significantly contributed to the energy and emission reduction in the country. A positive response from the consumers to the program has also been reported. In this chapter, the policy interventions in India to improve energy efficiency and impact on climate change mitigation are discussed.