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Policy Monitor


  • Aparna Sawhney


As part of its efforts to pursue a low-carbon growth path, India has made a commitment to increase the use of clean energy in electricity generation. This article examines the evolution of India's renewable energy policy as a way to address the twin goals of reducing energy poverty and mitigating climate change. I review India's regulatory reforms and policy instruments and compare them with those adopted in China in order to highlight the key policy features that have helped China emerge as a global leader in the renewable energy sector. India's recent initiatives for clean energy under the National Action Plan on Climate Change, including promoting trade in renewable energy certificates across states in order to comply with renewable purchase obligations, reflect a more integrated approach to building an efficient renewable energy-based power sector. The current rapid expansion of the renewable power sector, especially solar energy, suggests that for the foreseeable future India will continue to be one of the world's fastest growing renewable energy markets. (JEL: Q42, Q48, Q54) Copyright 2013, Oxford University Press.

Suggested Citation

  • Aparna Sawhney, 2013. "Policy Monitor," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 296-312, July.
  • Handle: RePEc:oup:renvpo:v:7:y:2013:i:2:p:296-312

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    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming


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