Energy efficiency, consumer awareness and choice: a study in Delhi
Student name: Mr Kunal Singh
Guide: Prof Kanchan Chopra
Year of completion: 2013
Host Organisation: TERI University
Abstract: The Bureau of Energy Efficiency introduced energy efficiency labeling programme
with an objective to reduce the energy intensity of Indian economy. The energy label
provides information on energy efficiency of an appliance and associated cost savings
which helps consumers to overcome the barrier of information deficit. The
effectiveness of this programme depends on two outcomes. First is the awareness of
energy efficiency ratings and second is the choice to purchase an energy efficient
appliance. Using primary data of 121 households of Delhi, the study jointly estimates
household‟s awareness of energy efficiency ratings and choice of energy efficient
appliance. The result for three household consumer appliances shows that
household‟s demographic characteristics have a positive effect on both the outcomes.
Both smaller and younger households show higher response towards choice of energy
efficient appliance. Interestingly, the result shows that affluent households are less
likely to choose an appliance with higher energy efficiency ratings. A cluster level
spillover of knowledge of energy efficiency rating is likely to increase a household‟s
awareness of energy efficiency ratings.
