Opportunities, Barriers, Policy and Practice
Edited by Shane Fudge, Michael Peters, Steven M. Hoffman and Walter Wehrmeyer
Chapter 11: Energy demand implications of structural changes in India
As the Indian economy has abandoned the traditional ‘Hindu’ growth rate for a faster economic growth path in recent years, major changes to the traditional Indian way of life are emerging. The rapidly growing Indian population, accelerating rate of urbanization, growing size of the middle class and an increasing level of integration of the country with the rest of the world are contributing to these changes. This transformation will have significant implications for both its long-term future and on the structure of the country’s energy system. The purpose of this chapter is to analyse the implications of ongoing macro-level changes on energy demand with a particular emphasis on household demand. While a number of studies have looked at the influence of changing lifestyles on energy demand in India (de la Rue du Can et al., 2009a, 2009b; Filippini and Pachauri, 2004; Pachauri, 2004; World Bank, 2008), they have either focused on a specific area or sector, for example, the McKinsey Global Institute (MGI) analysis of urbanization (2012) or the World Bank’s assessment of residential electricity demand (2008), or used an older data set (de la Rue du Can et al., 2009; who used the National Sample Survey Office data of 2001 or 2004–05; Filippini and Pachauri, 2004; Pachauri, 2004). This chapter relies on more recent data to capture the effects on residential energy demand by disaggregating rural and urban populations and considering their income differences.
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