Abstract
India has made commitments at the global level towards supporting sustainable development goals and is progressing towards achieving them. Its position in the composite sustainable development index improved from 57 in 2018 to 60 in 2019 (Economic Survey 2019–2020, Government of India, in Sustainable development and climate change, Chapter 6, 2:167–192, 2020). This chapter aims at documenting and assessing policy measures adopted by government of India towards sustainable consumption with a special focus on policies towards energy efficiency. Energy consumption in India has been growing at an average growth rate of 5.3 per cent from the last five years, 2013–2017. India’s share in global energy consumption has reached 5.6 per cent in 2017 (BP statistical review of world energy, 2018). With economic growth the energy consumption is expected to increase manifold in future. Energy consumption results in emissions leading to air pollution. Nine out of the ten most polluted cities in the world are in India. Vehicular emissions and industrial pollution are major factors for air pollution. The government of India has undertaken various policy measures towards energy conservation and efficient use of energy. While some of the policy measures target industries, other policy measures aim at sustainable consumption via demand-side policies. Energy consumption labels inform consumers of the relative efficiency of different products and are going to be effective if consumers are willing to pay a higher price for the energy-efficient products once information is provided. The chapter also includes a discrete choice experiment (DCE) conducted to investigate whether car drivers in New Delhi, India, value fuel-efficient cars. The DCE was designed to estimate consumers’ willingness to pay for star labelled cars in New Delhi and estimate the impact of socio-economic characteristics such as income and education in influencing consumers’ willingness to pay. The experiment is conducted in two districts of Delhi, South Delhi and East Delhi. The two districts differ in socio-economic characteristics such as affluence, education, occupational structure, etc. These differences have an interesting bearing on the results. We find that the South Delhi respondents have a stronger preference for high star label car and on average, are willing to pay 5050 US Dollars for the five star label car as compared to 1186 US Dollars by East Delhi respondents.
Keywords
- Energy efficiency regulation
- India
- Fuel efficiency label
- Consumer willingness to pay
This is a preview of subscription content, access via your institution.
Buying options
References
Atmanand Gupta, A. K., & Raman, R. (2009). Energy and sustainable development: An Indian perspective. World Academy of Science, Engineering and Technology, 54, 128–133. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.192.8043&rep=rep1&type=pdf.
Balachandra, P., Ravindranath, D., & Ravindranath, N. H. (2010). Energy efficiency in India: Assessing the policy regimes and their impacts. Energy Policy, 38(11), 6428–6438. https://doi.org/10.1016/j.enpol.2009.08.013.
Bardhan, R., Debnath, R., & Jana, A. (2019). Evolution of sustainable energy policies in India since 1947: A review. Wires: Energy and Environment, 8(5), 1–16. https://doi.org/10.1002/wene.340.
BP Statistical Review of World Energy, June 2018, 1–56. Retrieved from https://www.bp.com/content/dam/bp/businesssites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2018-full-report.pdf.
BP Statistical review of world energy, June 2019, 1–64. Retrieved from https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2019-full-report.pdf.
Bureau of Energy Efficiency Consultation Paper. (2011). Standards and labeling of fuel consumption in cars (pp. 1–19). Retrieved from http://www.indiaenvironmentportal.org.in/files/file/BEE\%20Consultation\%20Paper-21Oct2011.pdf.
Chunekar, A. (2014). Standards and labeling program for refrigerator: Comparing India with others. Energy Policy, 65, 626–630. https://doi.org/10.1016/j.enpol.2013.09.069.
Codagnone, C., Veltri, G. A., Bogliacino, F., Lupianez-Villanueva, F., Gaskell, G., Ivchenko, A., … Mureddu, F. (2016). Labels as nudges? An experimental study of car eco-labels. Econ Polit, 33, 403–432. https://doi.org/10.1007/s40888-016-0042-2.
Economic Survey 2019–20, Government of India. (2020). Sustainable development and climate change (Chapter 6, Vol. 2, pp. 167–192). Retrieved from https://www.indiabudget.gov.in/economicsurvey/.
Jain, M., Rao, A. B., & Patwardhan, A. (2018). Appliance labeling and consumer heterogeneity: A discrete choice experiment in India. Applied Energy, 226, 213–224. https://doi.org/10.1016/j.apenergy.2018.05.089.
Jaiswal, D., & Kant, R. (2018). Green purchasing behaviour: A conceptual framework and empirical investigation of Indian consumers. Journal of Retailing and Consumer Services, 41, 60–69. https://doi.org/10.1016/j.jretconser.2017.11.008.
Jaiswal, D., & Singh, B. (2018). Toward sustainable consumption: Investigating the determinants of green buying behaviour of Indian consumers. Business Strategy and Development, 1(1), 64–73. https://doi.org/10.1002/bsd2.12.
Kautish, R., & Sharma, R. (2018). Study on relationships among terminal and instrumental values, environmental consciousness and behavioral intentions for green products. Journal of Indian Business Research. https://doi.org/10.1108/JIBR-01-2018-0013.
Khan, N. A., Fatmi, M. R., & Habib, M. A. (2017). Type choice behavior of alternative fuel vehicles: A latent class model approach. Transportation Research Procedia, 25, 3299–3313. https://doi.org/10.1016/j.trpro.2017.05.188.
McKinsey. (2009). Environment and Energy Sustainability - An approach for India (pp. 1–90). Retrieved from https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Sustainability/Our%20Insights/Environmental%20and%20energy%20sustainability%20An%20approach%20for%20India/Environmental%20and%20energy%20sustainability%20An%20approach%20for%20India.pdf.
Ministry of Energy, Government of India, New Delhi. Annual Report 1990–1991 (pp. 1–43). Retrieved from https://powermin.nic.in/sites/default/files/uploads/ar90-91.pdf.
Nandi, P., & Basu, S. (2008). A review of energy conservation initiatives by the Government of India. Renewable and Sustainable Energy Reviews, 12(2), 518–530. https://doi.org/10.1016/j.rser.2006.03.016.
Nath, V., Kumar, R., Agrawal, R., Gautam, A., & Sharma, V. (2012). Green behaviors of Indian consumers. International Journal of Research in Management, Economics and Commerce, 2(11), 488–498. Retrieved from https://www.researchgate.net/profile/Rupesh_Kumar3/publication/275715831_GREEN_BEHAVIORS_OF_INDIAN_CONSUMERS/links/554528d10cf23ff716869a03/GREEN-BEHAVIORS-OF-INDIAN-CONSUMERS.pdf.
Niti Aayog. Appraisal document of Twelfth Five Year Plan, 2012–17. Retrieved from https://niti.gov.in/writereaddata/files/document_publication/Appraisal%20Document%20Five%20Year%20Plan%202012%20-%2017-Final%20%281%29.pdf.
Oak, H., & Bansal, S. (2019). Effect of Perform-Achieve-Trade policy on energy efficiency of Indian industries. SSRN, 1–38. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3412317.
Parikh, K. S., & Parikh, J. K. (2016). Realizing potential savings of energy and emissions from efficient household appliances in India. Energy Policy, 97, 102–111. https://doi.org/10.1016/j.enpol.2016.07.005.
Planning Commission. (2008). Twelfth Five Year Plan 2012–17: Faster, more inclusive and sustainable growth (Vol. I). Sage. Retrieved from https://nhm.gov.in/images/pdf/publication/Planning_Commission/12th_Five_year_plan-Vol-1.pdf.
Planning Commission. (2013). Eleventh five year plan 2007–12: Agriculture, rural development, industry, services, and physical infrastructure (Vol. III). Oxford University Press. Retrieved from https://niti.gov.in/planningcommission.gov.in/docs/plans/planrel/fiveyr/11th/11_v3/11th_vol3.pdf.
Potdar, A., Unnikrishnan, S., & Singh, A. (2016). Study of energy regulations in India. International Journal of Environmental Science and Development, 7(11), 835–842. https://doi.org/10.18178/ijesd.2016.7.11.891.
Prakash, G., Choudhary, S., Kumar, A., Garza-Reyes, J. A., Khan, S. A. R., & Panda, T. K. (2019). Do altruistic and egoistic values influence consumers’ attitudes and purchase intentions towards eco-friendly packaged products? An empirical investigation. Journal of Retailing and Consumer Services, 50, 163–169. https://doi.org/10.1016/j.jretconser.2019.05.011.
Rahi, O. P., Thakur, H. K., & Chandel, A. K. (2008). Power sector reforms in India: A case study. Joint International Conference on Power System Technology and IEEE Power India Conference (pp. 1–4). New Delhi. https://doi.org/10.1109/ICPST.2008.4745266.
Rasouli, S., & Timmermans, H. (2016). Influence of social networks on latent choice of electric cars: A mixed logit specification using experimental design data. Networks and Spatial Economics, 16, 99–130. https://doi.org/10.1007/s11067-013-9194-6.
Rathi, S. S., & Chunekar, A. (2015). Not to buy or can be ‘nudged’ to buy? Exploring behavioral interventions for energy policy in India. Energy Research & Social Science, 7, 78–83. https://doi.org/10.1016/j.erss.2015.03.006.
Revelt, D., & Train, K. (1998). Mixed logit with repeated choices: Households’ choices of appliance efficiency level. The Review of Economics and Statistics, 80(4), 647–657. https://doi.org/10.1162/003465398557735.
Sahoo, S. K., Varma, P., Lall, K. P., & Talwar, C. K. (2016). Energy efficiency in India: Achievements, challenges and legality. Energy Policy, 88, 495–503. https://doi.org/10.1016/j.enpol.2015.10.049.
Sarangi, G. K., Mishra, A., Chang, Y., & Hesary, F. T. (2019). Indian electricity sector, energy security and sustainability: An empirical assessment. Energy Policy, 135, 1–15. https://doi.org/10.1016/j.enpol.2019.110964.
Saraswat, Y., & Bansal, S. (2020). Health effects of sustained exposure to fine particulate matter: Evidence from India. SSRN, 1–21. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3542183.
Saxena, R. P., & Khandelwal, P. K. (2010). Can green marketing be used as a tool for sustainable growth? A study performed on consumers in India—An emerging economy. The International Journal of Environmental, Cultural, Economic and Social Sustainability, 6(2), 277–291. Retrieved from https://www.researchgate.net/publication/228985732_Can_Green_Marketing_be_used_as_a_tool_for_Sustainable_Growth_A_Study_Performed_on_Consumers_in_India-An_Emerging_Economy.
Sengupta, S. (2017). Social acceptability of energy-efficient lighting. In P. Sharma & S. Rajput (Eds.), Sustainable smart cities in India: Challenges and future studies (pp. 275–294). The Urban Book Series. https://doi.org/10.1007/978-3-319-47145-7_18.
Shen, J., & Saijo, T. (2009). Does an energy efficiency label alter consumers’ purchasing decisions? A latent class approach based on a stated choice experiment in Shanghai. Journal of Environmental Management, 90, 3561–3573. https://doi.org/10.1016/j.jenvman.2009.06.010.
Shrimali, G., Srinivasan, S., Goel, S., & Nelson, D. (2017). The effectiveness of federal renewable policies in India. Renewable and Sustainable Energy Reviews, 70, 538–550. https://doi.org/10.1016/j.rser.2016.10.075.
Shukla, S., & Zia, H. (2016). Energy efficiency in India: Policies and their impacts. Energy Sources, Part B: Economics, Planning and Policy, 11(10), 982–989. https://doi.org/10.1080/15567249.2013.799245.
Sovacool, B. K., & Brown, M. A. (2010). Twelve metropolitan carbon footprints: A preliminary comparative global assessment. Energy Policy, 38, 4856–4869. https://doi.org/10.1016/j.enpol.2009.10.001.
The Economics Times. (2019). Government may list 8 single-use plastic items. Retrieved from https://economictimes.indiatimes.com/news/politics-and-nation/government-may-list-8-single-use-plastic-items/articleshow/72324377.cms?from=mdr%20.
The Hindu Business Line. (2018). Centre sets renewable purchase obligation for FY22 at 21%. Retrieved from https://www.thehindubusinessline.com/news/centre-sets-renewable-purchase-obligation-for-fy22-at-21/article24175501.ece.
Thomsen, J., & McAloone, T. C. (2014). Does the ecomark label promote environmentally improved products in India and what experiences can be drawn from the Nordic ecolabel? In A. Chakrabarti (Eds.), ICoRD’15—Research into Design Across Boundaries, 2. Smart Innovation, Systems and Technologies, 35, 125–135. Retrieved from https://link.springer.com/chapter/10.1007%2F978-81-322-2229-3_11#citeas.
Troja, B. (2016). A quantitative and qualitative analysis of the super-efficient equipment program subsidy in India. Energy Efficiency, 9, 1385–1404. https://doi.org/10.1007/s12053-016-9429-8.
Vasudevan, R., Cherail, K., Bhatia, R., & Jayaram, N. (2011). Energy efficiency in India: History and overview. Alliance for an Energy Efficient Economy. Retrieved from http://www.aeee.in/wp-content/uploads/2016/03/AEEE-EE-Book-Online-Version-.pdf.
Ward, D. O., Clark, C. D., Jensen, L. K., Yen, S. T., & Russell, C. S. (2011). Factors influencing willingness to pay for the energy star label. Energy Policy, 39, 1450–1458. https://doi.org/10.1016/j.enpol.2010.12.017.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s)
About this chapter
Cite this chapter
Bansal, S., Grover, C., Martinez-Cruz, A.L. (2021). Towards Sustainable Consumption Practices: Evidence from India. In: Bali Swain, R., Sweet, S. (eds) Sustainable Consumption and Production, Volume I. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-56371-4_17
Download citation
DOI: https://doi.org/10.1007/978-3-030-56371-4_17
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-56370-7
Online ISBN: 978-3-030-56371-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)