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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: Q41: Energy: Demand and Supply; Prices, Q35: Hydrocarbon Resources, Q54: Climate; Natural Disasters and Their Management; Global Warming, Q40: Energy: General, Q21: Renewable Resources and Conservation: Demand and Supply; Prices, Q24: Renewable Resources and Conservation: Land

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 bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

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