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Barriers to Energy-Efficiency in Electricity Generation in India

Abstract:
This paper explores the sources and magnitude of energy-inefficiency in the electricity generating sector in India and its implications for carbon emissions from this sector. An econometric methodology is developed to disaggregate and quantify the contribution of technical and institutional factors to this inefficiency. The analysis demonstrates the potential for institutional and economic policy reforms that provide incentives for the adoption of efficiency-enhancing production practices to reduce carbon emissions while increasing net electricity generation, even with the existing capital equipment.

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Energy Specializations: Electricity – Generation Technologies; Electricity – Policy and Regulation; Energy and the Economy –Economic Growth and Energy Demand; Energy and the Economy – Resource Endowments and Economic Performance

JEL Codes:
Q2 -
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
O13 - Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q34 - Natural Resources and Domestic and International Conflicts

Keywords: Energy efficiency, energy use, India, electricity generation, air pollution, carbon dioxide emissions

DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No1-2


Published in Volume20, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.