NO: WP-2022-015
AUTHOR: Manisha Jain
TITLE: Energy efficiency targets and tracking savings: Measurement issues in developing economies
ABSTRACT :
Energy efficiency plays a central role in climate change mitigation policies, but their impact on
economy-wide energy consumption is uncertain. Improved methods to measure energy efficiency
savings are adopted mainly in countries with mandatory energy efficiency targets. These countries
combine bottom-up and top-down methods to enhance reliability. India has implemented various energy
efficiency measures, and their impact is estimated using the simplified deemed savings bottom-up
approach. Index Decomposition Analysis is a simple top-down approach, but its use in India is limited
due to data gaps. Using India’s energy balances from International Energy Agency, I estimate the
energy efficiency savings in India during 2011-19. I find that the IDA estimates are lower than the
government’s deemed savings estimates. The underlying assumption in the simplified deemed savings
approach and data gaps in index decomposition analysis limits the usability of the estimates. National
level targets on energy efficiency can push improvements in energy savings measurement techniques
used in India. The targets can also address a few barriers in the energy efficiency markets.
Keywords: energy efficiency savings, energy efficiency targets, energy intensity, decomposition
analysis, manufacturing energy intensity, energy balances
JEL Code: Q4, K3, O13
Weblink: http://www.igidr.ac.in/pdf/publication/WP-2022-015.pdf
