Towards an Energy-Efficient Economy: Policy Measures by Government of India

Bansal, Sangeeta; Rahul, M.

India, the second-most populous country in the world and the third-largest consumer of primary energy, faces the challenge of meeting the twin objectives of fulfilling the aspirations of its citizens by providing them a reasonable standard of living while at the same time to protect its environment and meet climate change objectives. A potent strategy for India that can help in achieving both these objectives is that of energy efficiency. However, literature talks about an energy efficiency gap implying that actual energy efficiency is rarely at the optimal level, if ever. Economic theory suggests a variety of economic instruments to close this energy efficiency gap. The Government of India has adopted various policy measures to enhance the energy efficiency of its industrial and household sector. The chapter aims at analysing these energy efficiency interventions by the Government of India and comment on their performance.