Energy Labels in India: Do we Use it?

Abstract

Energy efficiency and conservation practices intensified with time but also raised the questions about uncertainties about its use on the demand side for ensuring energy security. To cater to climate change and increasing air pollution, the pace for moving towards energy efficiency should increase. Energy efficiency is seen as a “low cost-no regret” and thus can be opted in the Indian household sector. Standard and labeling (S&L) programs provide a common energy efficiency benchmark which makes it easy for utilities, companies, and various agencies and encourages consumers to buy energy efficient products, and also encourages manufacturers to bring more efficient products into the market. They provide information regarding energy consumption attributes and impact the labeled products and services to consumers, retailers, policymakers, and other interested parties which help in making informed choices about the products and services and also indicate the preference of consumers to manufacturers and service providers. This article tries to understand what role energy labels play in decision making? And how different information (energy labels) affect the decision making of consumers in Indian households.