Barriers, Drivers, and Skilling Needs for Energy Efficiency in Indian Manufacturing

Kumar Abhishek (), Amrita Goldar (), Sunishtha Yadav (), Sajal Jain () and Diya Dasgupta ()
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Kumar Abhishek: Indian Council for Research on International Economic Relations (ICRIER)

Indian Council for Research on International Economic Relations (ICRIER) Policy Paper from Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India

Abstract: The escalating threat of global climate change has positioned energy efficiency (EE) at the forefront of energy and environmental policy. While EE technologies offer significant potential to reduce both financial costs and environmental impacts, their adoption remains limited, revealing a persistent paradox. Drawing evidence from key focus states, this study examines the barriers contributing to the EE adoption gap, highlighting compliance-driven behaviour, high upfront costs, undervaluation of future savings, and gaps in workforce skills. Integrating repair and maintenance practices with operational processes emerges as a critical pathway to expand adoption. Beyond operational benefits, EE investments also generate significant macroeconomic spillovers by creating jobs and upskilling workers, reinforcing their strategic value. These findings highlight the EE gap and underscore the need for coordinated, integrated approaches that strengthen in-house capacity, support workforce development, and simultaneously drive adoption, operational efficiency, and broader socio-economic gains.

Keywords: Energy Efficiency Gap; Market Barriers; Behavioural Barriers; Employment; icrier (search for similar items in EconPapers)
Pages: 20 page
Date: 2025-11
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