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Barriers to Energy-Efficiency in Electricity Generation in India

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  • Madhu Khanna
  • David Zilberman

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.

Suggested Citation

  • Madhu Khanna & David Zilberman, 1999. "Barriers to Energy-Efficiency in Electricity Generation in India," The Energy Journal, , vol. 20(1), pages 25-41, January.
    • Handle: RePEc:sae:enejou:v:20:y:1999:i:1:p:25-41
    DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No1-2
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    Cited by:

    1. Jose García-Quevedo & Xavier Massa-Camps, 2019. "Why firms invest (or not) in energy efficiency? A review of the econometric evidence," Working Papers 2019/07, Institut d'Economia de Barcelona (IEB).
    2. Chikkatur, Ananth P. & Sagar, Ambuj D. & Sankar, T.L., 2009. "Sustainable development of the Indian coal sector," Energy, Elsevier, vol. 34(8), pages 942-953.
    3. Nhan, T. Nguyen & Minh Ha-Duong & Thanh C. Tran & Ram M. Shrestha & Franck Nadaud, 2010. "Barriers to the adoption of renewable and energy-efficient technologies in the Vietnamese power sector," CIRED Working Papers halshs-00464675, HAL.
    4. Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November.
    5. Jindal, Abhinav & Nilakantan, Rahul, 2021. "Falling efficiency levels of Indian coal-fired power plants: A slacks-based analysis," Energy Economics, Elsevier, vol. 93(C).
    6. Kabir Malik, Maureen Cropper, Alexander Limonov and Anoop Singh, 2015. "The Impact of Electricity Sector Restructuring on Coal-fired Power Plants in India," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    7. Sugathan, Anish & Malghan, Deepak & Chandrashekar, S. & Sinha, Deepak K., 2019. "Downstream electric utility restructuring and upstream generation efficiency: Productivity dynamics of Indian coal and gas based electricity generators," Energy, Elsevier, vol. 178(C), pages 832-852.
    8. Chikkatur, Ananth P. & Sagar, Ambuj D. & Abhyankar, Nikit & Sreekumar, N., 2007. "Tariff-based incentives for improving coal-power-plant efficiencies in India," Energy Policy, Elsevier, vol. 35(7), pages 3744-3758, July.
    9. Kroeze, Carolien & Vlasblom, Jaklien & Gupta, Joyeeta & Boudri, Christiaan & Blok, Kornelis, 2004. "The power sector in China and India: greenhouse gas emissions reduction potential and scenarios for 1990-2020," Energy Policy, Elsevier, vol. 32(1), pages 55-76, January.
    10. Ghosh, Ranjan & Kathuria, Vinish, 2016. "The effect of regulatory governance on efficiency of thermal power generation in India: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 89(C), pages 11-24.
    11. Sengupta, Ishita, 2007. "Regulation of suspended particulate matter (SPM) in Indian coal-based thermal power plants: A static approach," Energy Economics, Elsevier, vol. 29(3), pages 479-502, May.
    12. Thakur, Tripta & Deshmukh, S. G. & Kaushik, S. C. & Kulshrestha, Mukul, 2005. "Impact assessment of the Electricity Act 2003 on the Indian power sector," Energy Policy, Elsevier, vol. 33(9), pages 1187-1198, June.
    13. Zhang, Chi & May, Michael M. & Heller, Thomas C., 2001. "Impact on global warming of development and structural changes in the electricity sector of Guangdong Province, China," Energy Policy, Elsevier, vol. 29(3), pages 179-203, February.
    14. Bhattacharya, Soma & Cropper, Maureen L., 2010. "Options for Energy Efficiency in India and Barriers to Their Adoption: A Scoping Study," RFF Working Paper Series dp-10-20, Resources for the Future.
    15. Hou, Zheng & Roseta-Palma, Catarina & Ramalho, Joaquim J.S., 2024. "Can operational efficiency in the Portuguese electricity sector be improved? Yes, but..," Energy Policy, Elsevier, vol. 190(C).
    16. Khanna, Madhu & Zilberman, David, 1999. "Freer markets and the abatement of carbon emissions: the electricity-generating sector in India," Resource and Energy Economics, Elsevier, vol. 21(2), pages 125-152, May.
    17. Vashishtha, Sanjay & Ramachandran, M., 2006. "Multicriteria evaluation of demand side management (DSM) implementation strategies in the Indian power sector," Energy, Elsevier, vol. 31(12), pages 2210-2225.
    18. Kabir Malik & Maureen Cropper & Alexander Limonov & Anoop Singh, 2011. "Estimating the Impact of Restructuring on Electricity Generation Efficiency: The Case of the Indian Thermal Power Sector," NBER Working Papers 17383, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Energy efficiency; energy use; India; electricity generation; air pollution; carbon dioxide emissions;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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