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Indian Journal of Science and Technology Vol. 4 issue 3 (March 2011) 249 ISSN: 0974- 6846 Demand side management of electrical energy efficiency and environmental sustainability in India C. Mayakrishnan Department of Economics, Presidency College, Chennai–5, TN, India [email protected] Abstract Electricity has a peculiar characteristic that it cannot be economically stored in large quantities. Electricity demand is the fastest growing form of energy consumed worldwide and it is predicted that the world’s net electricity consumption will double by 2030. Therefore its generation and consumption need to be matched at all times. Demand side management (DSM) refers to the ability to alter end user electrical consumption in response to system conditions. It aims at improving energy efficiency through reduction of Kilowatt hours of energy consumption for the same service or activity. Other benefits of DSM could include higher end-use energy efficiency, improvement in quality and reduction in cost of power. Energy-efficiency improvements can slow the growth in energy consumption, save consumers money and reduce capital expenses for energy infrastructure. Innovative and efficiency improvements through DSM programmes have been carried out in a more open energy market. At the same time, government intervention has also been strengthened by the worsening of environmental situation and the need to significantly reduce emissions of greenhouse gases. DSM programmes are used to eliminate or reduce the need for additional peak or base load generating capacity and/or distribution facilities. Losing this opportunity to build efficiency into new economies would have serious financial, environmental and social consequences in the future. India is the world’s sixth largest energy consumer. The power generating capacity increased from 66086 MW to 97846 MW during 1990-91 to 1999-2000 at an annual rate of 4.5%. The installed capacity of the power sector increased 60 fold between 1950 and 2000 at an annual growth rate of 8.5%. The per capita electricity consumption in India increased from 354.75 kWh in 1999-2000 to nearly 704.00 kWh in 2007-2008. The CO2 production in India has been showing an increasing trend in the new millennium in consonance with the rate of growth of Indian economy. Emissions per unit of electricity supplied from fossil fuels are estimated at 167 tonnes of carbon per GWh in 2005. In India power plants burn mostly coal with approximately 10-30% excess air. The national inventory of green house gases indicates that 55% of the total emissions in India come from energy sector. While public is interested in using energy more efficiently, there are several market barriers that prevent it from making rational investments in efficient technologies and practices. As the economy develops, households switch over from traditional fuels to modern and cleaner energy. Hence it is certain that household consumption of electricity is expected to increase rapidly with the increase in the growth of the economy and rise in per capita income. Urbanisation and increased flow of income call for ever-expanding sets of diverse needs. If those appliances are used efficiently, they will augment electric supply. Energy conservation potential for the economy as a whole has been assessed as 23% with maximum potential in industrial and agricultural sectors. At present new rare-earth phosphors have been developed to provide a warm light that is close in quality to the light of an incandescent. The new phosphors improve the colour of fluorescents with the same efficiency. Electricity for lighting represents approximately 34% of Indian peak power and roughly 17% of the electrical energy consumed. Incandescent lighting is estimated to constitute at least 17% of the peak demand, and roughly 10% of the national electricity consumption (135 TWh in 1984-85). Experts suggest that transferring subsidies from electricity to compact fluorescent lamps (CFLs) is a good proposition. Energy labelling provides information in a form that is objective and easy to understand for customers. The specified products are required to supply and declare energy data that has been determined when tested to the relevant Standard. The operating cost is also known as the ‘second price tag,’ and can help customers choose between models. Both energy labelling and standards stimulate technological change or innovation. This paper aims to examine electricity production and consumption at the All-India level and analyse the social and environmental aspects of electricity in the household sector. Keywords: Electricity, energy-efficiency, green house gases, urbanization. Introduction Electricity has a peculiar characteristic that it cannot be economically stored in large quantities. Electricity demand is the fastest growing form of energy consumed worldwide and it is predicted that the world’s net electricity consumption will double by 2030. Therefore its generation and consumption need to be matched at all times. Conservation is the most economical, straightforward and effective means of reducing reliance on fossil fuels. Demand Side Management (DSM) refers to the ability to alter end user electrical consumption in response to system conditions. DSM activities are designed to encourage customers to modify their patterns of electricity usage and to use energy-efficient appliances so as to match the level of electricity demand with availability. DSM programs play an important role in mitigating electrical system emergencies, avoiding blackouts and Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol. Indian Journal of Science and Technology increasing system reliability, reducing dependency on expensive imports, reducing high energy prices, providing relief to the power grid and generation plants, avoiding high investment in generation, transmission and distribution network and leading to environmental protection. DSM techniques are the cheapest, fastest and cleanest way to solve the electricity problems. “DSM programs are designed to save money for all consumers besides protecting the environment”. It aims at improving energy efficiency through reduction of Kilowatt hours of energy consumption for the same service or activity. Other benefits of DSM could include higher end-use energy efficiency, improvement in quality and reduction in cost of power. Energy-efficiency improvements can slow the growth in energy consumption, save consumers money and reduce capital expenses for energy infrastructure. Additionally, energy efficiency reduces local environmental impacts, such as water and air pollution from power plants, and mitigates greenhouse gas emissions. Energy efficiency standards and labelling programmes provide enormous energy savings potential. DSM is especially important to power planners in growing economies where installation of an inefficient infrastructure means many years of wasted power. DSM has two main cost components–the cost of the new enduse technologies and practices and the administrative and transaction costs of policy to encourage their use. Future energy needs are based on two options: increasing supply or decreasing the demand for energy, and the latter implies demand-side management. The restructuring of power in the late 1990s presented new challenges. Innovative and efficiency improvements through DSM programmes have been carried out in a more open energy market. At the same time, government intervention has also been strengthened by the worsening of environmental situation and the need to significantly reduce emissions of greenhouse gases. In this background, the objectives of this study are: 1) To study the production and consumption of electricity in India. 2). To analyse the energy efficient household equipments and environmental sustainability Methodology and data sources of the study The present study is exclusively based on the secondary data collected from different published and unpublished sources. The published sources are mainly drawn from the Government of India publications such as Economic Survey, National Sample Survey, Bureau of Energy Efficiency and Tamil Nadu Electricity Board. The objectives of the study have been verified using secondary data. Review of literature Major area of interest to DSM programmes is the residential sector where variety of electrical appliances is used. DSM of electricity seeks to reduce electric loads from the end-user or consumer through energy efficiency Vol. 4 issue 3 (March 2011) 250 ISSN: 0974- 6846 (EE) and load-shaping measures. Successful demand side management programs, stimulated by state incentives, requirements, and financial structures, can reduce the amount of electricity a utility must provide, decreasing the need for new generation sources (Williams et al., 2007). Reduction in electricity demand generally translates to reduction in greenhouse gas emissions produced by generation. Estimations of DSM load reduction potential inform utility management strategies and climate policy. The accuracy of such estimates can affect plans for future programs, policies, generation sources, etc. (Nadel, 2004). Energy-efficiency improvement (including design that stimulates energyefficient use of equipment) had a considerable impact in the early 1980s. Hence increasing the rate of efficiency improvement seems to be the most straightforward approach to limiting the growth of energy consumption (Reddy 2003). If those appliances are used efficiently, they will augment electric supply. As long as a utility's cost to conserve is less than the cost of generating it, the utility system opts for investing to conserve rather than generate electricity for meeting the demand (Chitrarattananon et al., 1990). The net benefits of energy efficient technologies are calculated by comparing avoided generation expenditures and avoided electricity subsidies with lost revenues from reduced electricity sales and subsidies of the energyefficient technologies. In India, the benefits to utilities of installing CFLs are large enough that subsidizing the technology heavily is a remunerative proposition in almost every case (Gadgil et al., 1990). DSM programmes are used to eliminate or reduce the need for additional peak or base load generating capacity and/or distribution facilities (WCD, 2000). The real advantage in high growth economies is that adding efficiency into new equipment is far cheaper than improving existing equipment. Losing this opportunity to build efficiency into new economies would have serious financial, environmental and social consequences in the future (World Bank, 1999). Utility DSM strategies are regarded as resource acquisition measures. In the classical sense, IRP aims at balancing supply-side options and demand-side measures at the macroeconomic level until marginal costs of traditional or alternative energy supply-side options equal marginal costs of demand-side options (Thomas, 2000). To reduce social costs, utility planners must consider both supply and demand side options, and sometimes take into account environmental externalities (Didden, 2003). Electricity production and consumption India is the world’s sixth largest energy consumer, relying on coal as the primary energy source for over half of its total energy needs. Thermal power is more than three quarters of India’s electricity, taking advantage of India’s position as the third largest producer of coal in the world. The power generating capacity increased from Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol. Indian Journal of Science and Technology Vol. 4 issue 3 (March 2011) 251 ISSN: 0974- 6846 66086 MW to 97846 MW during 1990-91 to 1999-2000 at estimated at 1.1 Teragrams (Tg) per day or 397 Tg per an annual rate of 4.5 per cent. The installed capacity of year. Average CO emission per unit of electricity is 1.04 the power sector increased 60 fold between 1950 and Giga grams (Gg). Technological improvements in efficient 2000 at an annual growth rate of 8.5 per cent. The growth combustion of coal can lead to greater production of of electricity consumption in India since 1971 has been electricity per unit of coal that will effectively reduce CO faster than that of other fuels. Per capita household emission per unit of electricity. The national inventory of electricity use has grown rapidly than per capita income. greenhouse gases indicates that 55 percent of the total Despite the tremendous growth, the per capita emissions in India come from energy sector. These consumption of electricity in India remains one of the include emissions from road transport, burning of lowest in the world (Government of India 1986). Table 1 traditional biomass fuels, coal mining, and fugitive emissions from oil and natural gas. Emissions from the gives production and per capita consumption of electricity power sector reach 1180 Mt-CO2 in in India. It shows that the per capita Table 1. Total production & per electricity consumption in India capita consumption of electricity in India. 2030, which is about three times the increased from 354.75 kWh in 1999present emission level. Carbon Total Per capita 2000 to nearly 704.00 kWh in 2007emissions grow at a much faster rate Year production consumption of (MU) electricity (kWh) in the recent period due to the 2008. During the same period the 354.75 production of electricity from utilities 1999-2000 501.04 lowering share of coal in electricity 368.00 increased significantly from about 2000-2001 517.29 generation and substitution of coal by 2001-2002 533.80 373.00 501.04 MU to 1280.76 MU. gas and other carbon free 2002-2003 560.90 390.00 technologies. India's greenhouse gas emissions 560.20 India has experienced a dramatic 2003-2004 529.23 631.41 Social and environmental aspects of growth in fossil fuel CO2 emissions, and 2004-2005 622.16 2005-2006 670.50 656.80 electricity in the household sector the data compiled by various agencies 2006-2007 803.41 672.00 show an increase of nearly 5.9 percent 2007-2008 1280.76 Economic & social dimension of 704.00 per annum since 1950. At present India household energy use Source: Central electricity authority is rated as the 4th largest contributor of India has been experiencing both (DMLF division) – 2009. CO2 emissions behind the USA, Russia qualitative and quantitative changes in and China. However, the per capita CO2 of 1.2 tonnes per its energy consumption pattern (CMIE, 2001). Household annum is well below the world average of 3.87 tonnes per sector accounts for about 30 percent of final energy annum. CO2 emission and economic growth rate is shown in consumption reflecting the importance of household sector in total national energy scenario (Reddy, 2003). SEBs in Table 2. It is quite clear that the CO2 production in India has India evolved power policy in line with social security been showing an increasing trend in the new millennium equations because it is a social and democratic country. in consonance with the rate of growth of Indian economy. Though SEB function as autonomous service-cumFossil fuel emissions in India continue to result largely commercial bodies, they also function as the agents of from coal burning. India cannot take the back seat the governments in executing various policies for the because it is highly vulnerable to climate change as its state. The unaccountability feature of power consumption led to gross inefficiency at economy is heavily reliant on institutional and climate sensitive sectors like Table 2. CO2 Emission and economic growth rate. technical, Cumulative Economic organizational levels. Cost agriculture and forestry. The vast CO2 growth rate escalation injected inefficiency CO2 Year (Tonnes) low-lying and densely populated (%) (Tonnes) into the system called for coastline is susceptible to rise in 2000-2001 78055.80 78055.80 5.15 restructuring and reforms of sea level. 2001-2002 80147.64 158203.44 4.10 power sector in India. CO2 Emissions from electricity 2002-2003 83097.36 241300.80 8.60 End-use energy efficiency generation 2003-2004 86739.47 328040.27 6.90 improvements provide multiple The amount of CO2 released 2004-2005 91535.21 419575.48 7.30 benefits; higher efficiency has by the consumption of one unit of 2005-2006 96662.77 516238.25 7.70 direct and indirect financial energy depends on the type of 2006-2007 104290.67 620528.92 8.10 benefits to consumers and society 7.50 fuel used for producing energy. 2007-2008 111223.17 731752.09 by reducing the need for 7.10 For instance, more CO2 are 2008-2009 119155.70 739684.60 Source: Economic survey, Government of India & additional supply and/or emitted from one unit of coal than Bureau of energy efficiency. distribution facilities, lowering from one unit of gas. Emissions energy costs, reducing equipment per unit of electricity supplied from fossil fuels are customer estimated as 167 tonnes of carbon per GWh in 2005. In maintenance, creating opportunities for reducing India power plants burn mostly coal with approximately equipment size, and mitigating risks from future price 10-30 percent excess air. Total carbon monoxide (CO) fluctuations. Efficiency investments can stimulate emissions for 1997 from all the power plants in India are economic development and local job opportunities, Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol. Indian Journal of Science and Technology improve energy security, and improve the quality of living and working conditions. Higher efficiency reduces both the direct emissions from onsite energy use, and the environmental impacts resulting from fossil fuel and electricity production and transmission. While public is interested in using energy more efficiently, there are several market barriers that prevent it from making rational investments in efficient technologies and practices. Household consumption of electricity The pattern of household consumption of electricity represents the standard of living as well as the stage of economic development of a society. As the economy develops, households switch over from traditional fuels to modern and cleaner energy. Hence it is certain that household consumption of electricity is expected to increase rapidly with the increase in the growth of the economy and rise in per capita income. Urbanisation and increased flow of income call for ever-expanding sets of diverse needs. Much of the electricity is consumed for heating and cooling purposes in higher income households. This in turn places increased demand on scarce resources for capital investment, material means and manpower. India in general and Tamil Nadu in particular faces widening gaps between electric supply and demand. Significant proportion of their populations has yet to receive basic electric services. In India, demand for power already outstrips available supply despite the fact that more than 50 percent of residences remain unelectrified. Meeting the projected increases in demand would involve untenable capital drains, foreign exchange demands, and environmental degradation. Efficiency in electricity consumption In this context, low-cost energy-efficient end-uses are attractive options that can reduce demand. Moreover, this could increase the energy services where living standards of majority of the population are already low. If those appliances are used efficiently, they will augment electric supply. Historically, energy efficiency in India has gradually emerged from being a subject of advocacy and awareness building to narrow the widening gap between supply-demand. As a potent tool to advance sustainable development, energy efficiency has come into its own. Power Ministry has developed initiative to make power available to all by 2012 by promoting energy efficiency and its conservation, which is the least cost option to augment energy supply. Energy conservation potential for the economy as a whole has been assessed as 23 percent with maximum potential in industrial and agricultural sectors (Gupta, 2006). Efficiency of household electrical appliances Increasing international trade in household appliances has meant that all countries are seeing a rapid improvement in the quality and efficiency at very little extra cost. For example, high efficiency, multi-stage, multi-speed compressors are made by only a few large Vol. 4 issue 3 (March 2011) 252 ISSN: 0974- 6846 companies. In the household and small commercial sector, efficient room-size split systems will continue to dominate the small air conditioner market. Compact and small tube fluorescent lamps and electronic dimmable ballasts are now sufficiently reliable to take over the market from conventional incandescent and fluorescent lamps. New lamp technologies such as sulphur lamps and induction lamps are under development. The best lighting technology is still less than 20 percent efficient in turning electricity into light, so there is a lot of scope for improvement. A wide variety of methods and fuels are used for cooking. No major breakthroughs should be expected in stove design, but there will be a transition to safer, cleaner, fuels such as natural gas, propane and electricity. The share of electricity will depend on the availability of bottled gas distribution systems. The most common fuels used for water heating are electricity, natural gas or kerosene. Solar water heating is a mature technology and can compete favourably with electricity. Energy efficiency lamps All fluorescent lamps operate by discharging an electric arc through mercury plasma enclosed in a glass tube. The ultraviolet (UV) photons emitted by the deexcitation of mercury atoms are converted to visible light by a phosphor coating on the inside of the glass tube. At present new rare-earth phosphors have been developed to provide a warm light that is close in quality to the light of an incandescent. The new phosphors improve the colour of fluorescents with the same efficiency. They also allow the diameter of the glass tube to be reduced to approximately one centimetre, with little lumen depreciation. The result is compact fluorescent lamps (CFLs) that are nearly the same size as standard incandescent and fit into the same sockets. Power system expansion is often based on the availability of capital resources for initial investments. The cost of avoided peak installed capacity (CAPIC) can be used to take such decisions. CAPIC refers to the net present value of an energy-efficient technology to be operated for the duration of the life of a power plant that renders the installation of a kW of generating capacity unnecessary. In India, the avoided peak demand at the busbar (42.38 watts) divided by power plant availability at peak hours (0.573) equals avoided installed capacity (EIA, 1988). Efficient lighting Residential electricity is highly subsidized in Tamil Nadu while industries pay higher price that are unable to obtain sufficient power during the peak periods. Electricity for lighting represents approximately 34 percent of Indian peak power and roughly 17 percent of the electrical energy consumed. Incandescent lighting is estimated to constitute at least 17 percent of the peak demand, and roughly 10 percent of the national electricity consumption (135 TWh in 1984-85). Household electric demand is expected to grow rapidly. As more homes become electrified, the negative impact of inefficient appliance Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol. Indian Journal of Science and Technology Vol. 4 issue 3 (March 2011) stock will increase, aggravating already serious shortages in peak power. 253 ISSN: 0974- 6846 and technologies are cost effective and therefore provide real cost savings to energy users. Barriers to use efficient appliances Energy efficient technology The goal of achieving ‘efficiency’ is inhibited by many market barriers including subsidising electricity. Experts suggest that transferring subsidies from electricity to compact fluorescent lamps (CFLs) is a good proposition (Gadgil and Jannuzzi, 1990). Generally in economies producing and conserving electricity through cost-benefit analyses of power plants and manufacturing plants and energy-efficient CFLs and windows are made to take optimal policy decisions. Despite the potential economic and environmental benefits of CFLs and windows worldwide, consumers may avoid adopting such technologies for any or many of the following reasons. 1. Energy-efficient technologies' annualised societal costs may be much lower than those of inefficient counterparts. Consumers with less income are unwilling to invest in an initial costly technology even though it is profitable in the long run. 2. Residential consumers benefit from subsidized electricity; their electricity bills do not reflect the full social costs of inefficient electric appliances. Where residential electricity is subsidized, consumers have little or no incentive to purchase and install relatively expensive, highly efficient appliances (Meyers et al., 1990). 3. Energy-efficient technologies are often unfamiliar. Purchasing an expensive, locally unproven appliance represents a financial risk that many households refuse to accept. India’s energy intensity per unit of GDP is higher compared to Japan, U.S.A. and Asia as a whole by 3.7, 1.6 and 1.5 times respectively. It is because of the fact that India being in a transition from an agricultural to an industrialized society increased urbanization and consumerism (McNeil et al., 2005). The cost effectiveness of an energy efficient technology may be estimated by calculating its cost of conserved energy (CCE). The cost of conserving a kWh by replacing a series of incandescent with a long-lasting CFL can be compared to the cost of energy. The CCE is the annualized net cost of investing in the technology divided by the annual energy savings it achieves: CCE = ((investment) (capital recovery rate) + (net annual increase in operation and maintenance costs minus avoided annual cost of incandescent))/ (Annual energy saved in kWh) The CCE provides a measure that is directly comparable to the cost or price of energy supply (Government of India, 2005). It is a generally accepted that the cost of conserved energy is lower than the cost of supply for a majority of the energy efficient technologies. Table 3 shows an example of the cost-effective energy efficiency potential for four products in India. It shows that among these products refrigerators and distribution transformers exhibit the highest potential for improving energy efficiency. Industrial sector, in addition to efficient motors, lighting and air conditioning systems, and variable speed drives are increasingly being utilized. These are cost effective in many applications. The annual benefit derived from a CFL to a consumer is the difference between the annual savings from avoided energy consumption and the annualized cost of the CFL. The net benefits of energy- efficient technologies are calculated by comparing avoided generation expenditures and avoided electricity subsidies with lost revenues from reduced electricity sales and subsidies of the energyefficient technologies. In India, the benefits to utilities of installing CFLs are large enough that subsidizing the technology heavily is a remunerative proposition in almost every case (Gadgil et al., 1990). Table 3. Cost effective energy efficiency improvement potential, India. Product Base Efficiency Percentage case case improvement (kWh/Year) (KWh /Year) Refrigerator Direct–cool 381 Frost–free 930 Room air conditioner Window 1191 Motors Agricultural – 5 HP 992 Industrial – 15 HP 4079 Industrial – 20 HP 5562 Distribution transformers 25 KVA 1036 63 KVA 1834 100 KVA 2619 160 KVA 3757 200 KVA 4989 208 508 45 45 1056 11 875 3264 3387 12 20 39 441 797 1068 1653 1880 57 57 59 56 62 Source: McNeil et al., 2005. 4. Energy-efficient appliances are costly. The resulting high prices can make such appliances uneconomical from any viewpoint within the energy sector. By managing electrical loads and maximizing the use of efficient electrical technologies, demand for electricity can be tempered. Many of these efficiency measures Energy labelling, energy efficiency & standards & programme Energy labelling provides information in a form that is objective and easy to understand for customers. The specified products are required to supply and declare energy data that has been determined when tested to the relevant Standard. Most of the goods in the market are with incomplete information of energy. All the users of goods, particularly the residential category, are not aware of the secondary costs of operating them. Some of the appliances currently available in the market are quite efficient. There are many other where the efficiency could be substantially improved. Energy labelling aims at creating a market full for efficient products through the provision of clear and objective information on energy Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol. Indian Journal of Science and Technology efficiency. People compare the size, features and price of the appliance while purchasing. The check list may not include energy efficiency in the first instance. However, once they establish the amount they would like to pay for appliance then energy consumption efficiency is a fair comparison between products. The operating cost is also known as the ‘second price tag,’ and can help customers choose between models. Both energy labelling and standards stimulate technological change or innovation. Some manufacturers seek to differentiate from competitors on energy efficiency attribute. Without energy labelling, customers have no way to determine appliance operating costs. Energy operating costs over an appliance's life are typically greater than the appliance purchase cost. So a lack of information on energy consumption can mean that there is a significant potential market failure - the inability of customer to estimate more than half of the total appliance costs. Standards and labelling (S&L) programme is one of the key activities for energy efficiency improvements. This would ensure that only energy efficient equipment and appliance would be made available to the consumers. Initially the equipment to be covered under S&L programme are household refrigerators, air-conditioners, water heater, electric motors, agriculture pump sets, electric lamps and fixtures, industrial fans and blowers and air-compressors. Conclusion The demand for electricity has been growing at rapid rate. The heavy reliance on fossil fuel for our energy requirement leads to the emission of various pollutants. Therefore conservation of our ecology and environment must be given prime importance while fulfilling our energy requirement. The DSM of energy consumption through energy efficient electrical household appliances will prove to be a cheap and efficient way of conserving our environment. Further, the energy standards and labels which are aimed to reduce various pollutants by the government of India and the respective state governments will pave the way for sustainable environment. The study concludes that the higher income and middle income people have preference over energy efficient electrical appliance but majority of the poor people uses the energy inefficient household products, due to high cost of energy efficient appliances. Therefore it is suggested that energy efficient electrical appliances must be subsidised heavily in order to provide opportunity to the poor people to use those appliances for sustainable environment. References 1. Chitrarattananon S, Rakwamsuk P and Kaewkiew J. 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Proceedings of the “Global Environmental and its sustainability: Implications and Strategies” held at Chennai, India (7th Nov.2010) & Bangkok, Thailand (25th-29th Nov.2010) Indian Society for Education and Environment (iSee) http://www.indjst.org Indian J.Sci.Technol.