Energy efficiency policies: a review of the international experience; with a special focus on the Indian context
Student name: Ms Kinni Singh
Guide: Prof Badal Mukhopadhyay
Year of completion: 2011
Host Organisation: National Institute of Public Finance and Policy
Supervisor (Host Organisation): Dr Manish Gupta
Abstract: The paper evaluates various measures and policies undertaken by the following countries: EU-27,
USA, Japan, Canada, Australia, Brazil, Russia, China, South Africa and finally, India. The focus
is primarily on fiscal and the financial instruments. The countries are so chosen that they
represent bulk of energy consumption. All these countries are among the top twenty consumer of
energy and have an active energy policy in place. In the study, we survey the international
practices in promoting energy efficiency in the economy and compare them against the Indian
energy policy scenario.
We find that among the developed economies, the market for energy efficiency is well
established and energy efficiency practices have been in place for decades now. Also, they have
progressed towards preferential loans, low interest loans, tax rebates, accelerated depreciation,
mandatory energy audits, and the like. The European Union and Japan fall into this category. The
United States of America mostly relies on one-time financial incentives and awareness campaigns
to induce energy efficiency. A few fiscal and financial instruments have also been employed.
Economies like Australia, Brazil, South Africa and Russia have comparatively fewer programmes
in energy efficiency and most of the existing ones aim at increasing awareness and grant of onetime
incentives or benefits. Canada and China also make use of a mix of instruments, both
monetary and non-monetary, for the purpose of inducing efficient energy consumption. For the
Indian case, the energy policy scenario is still at a very nascent stage, where most of the efforts
are limited to only awareness campaigns and labeling programmes. Efforts need to be directed
towards introducing more fiscal and financial incentives for adoption of energy efficient
measures. Energy prices also need to be restructured in India.
