Measuring the Impact of India’s Standard and Labeling program

Neha Dhingra

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Energy efficiency in appliances is emerging as a useful tool in addressing the issue of energy demand. To promote the usage of energy efficient products, India’s Energy Conservation Act (EC Act), 2001 identifies Standards & Labeling (S&L) as one of the major thrust area. Launched in 2006 by the Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power, in March 2002. The S&L program currently covers 21 product categories, of which five are under mandatory phase.

BEE undertakes a periodic assessment to measure the impact of its policy decision
sand market transformation for the labeling program. A comprehensive pan India survey covering both urban and rural areas and key stakeholders including consumers, retailers, and manufacturers, was carried out in 2014. The survey aimed to understand the level of awareness of the labeling program, efficacy of communication, attitudes of stakeholders towards labeled products and energy efficiency, as well as the impact on sales and usage of labeled products by manufacturers and consumers. The success of the program is critically dependent on awareness and acceptability of energy efficient products by consumers.

Compared to 2010, this study reveals that the S&L program has made significant progress in consumer awareness, even though energy efficiency is still not a top priority for the consumer for the purchase decision as compared to other factors such as product life, brand name and reputation. Level of consumer awareness, availability of energy efficient products and the consumer’s willingness to pay contributes to an increase in the penetration of technologically advanced energy efficient products. Some positive developments are also seen on the supply side with manufacturers and retailers willingness to manufacture and sell energy efficient and labeled products.

Authors: 

Neha Dhingra, Archana Walia and P. K. Mukherjee, CLASP

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