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

Author

Listed:
  • Kumar Abhishek

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Amrita Goldar

  • Sunishtha Yadav

  • Sajal Jain

  • Diya Dasgupta

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.

Suggested Citation

  • Kumar Abhishek & Amrita Goldar & Sunishtha Yadav & Sajal Jain & Diya Dasgupta, 2025. "Barriers, Drivers, and Skilling Needs for Energy Efficiency in Indian Manufacturing," Indian Council for Research on International Economic Relations (ICRIER) Policy Paper 53, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:ppaper:53
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    References listed on IDEAS

    as
    1. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
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    3. B. Sudhakara Reddy & Gaudenz Assenza, 2007. "Barriers and Drivers to Energy Efficiency - A new Taxonomical Approach," Development Economics Working Papers 22348, East Asian Bureau of Economic Research.
    4. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    5. Mette Talseth Solnørdal & Lene Foss, 2018. "Closing the Energy Efficiency Gap—A Systematic Review of Empirical Articles on Drivers to Energy Efficiency in Manufacturing Firms," Energies, MDPI, vol. 11(3), pages 1-30, February.
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