IMPACT OF ENERGY EFFICIENCY PROGRAMS ON ENERGY INTENSITY: AN AGGREGATIVE ANALYSIS FOR INDIA

Energy conservation through various energy efficiency measures have received a paramount attention in the Indian policy making for achieving sustainable economic progress as well as meeting the country's voluntary commitments to cut greenhouse gas emissions. The enaction of Energy Conservation Act, 2001 in fact marks the issuance of the first legal framework and institutional arrangement for enhancing energy efficiency in the country with the ultimate objective of reducing energy intensity of the Indian Economy. With a multi-sectoral outreach, various programs and initiatives have been framed to cut down energy intensity across the economy. This study undertakes an examination of the association between these measures and energy intensity at an aggregate level using Auto regressive distributive lag models for the time period 1979-80 to 2017-18, controlling for a variety of covariates relevant to energy intensity such as ratio of fossil vs alternate fuel shares, size of the industrial sector, energy prices and technological advancement. The analysis confirms the effectiveness of measures of energy efficiency on energy intensity in the long run and further strengthening of these measures as well as additional initiatives to harness the benefits of reduced intensity are suggested as the potential policy implications for the Indian economy.