Characterizing domestic electricity consumption in the Indian urban household sector

Price elasticity of electricity consumption is found as −0.72 (negative sign indicates that when the price of electricity increases, the consumption decreases). Electricity consumption in the Indian urban household is observed more responsive to ownership of air conditioner rather than demographic variables and other appliances. Considering predicted accountability of India for increased global emission due to air conditioning, ownership of air conditioners was investigated in depth, based on the data captured in the questionnaire survey. Factors considered were tonnage, energy star rating, usage duration, year of purchase, and numbers. It is observed that, electricity consumption in air conditioning could be reduced by 15% to 31%; if existing household air conditioners, older than 7 years were replaced by new energy efficient air conditioners, subject to all other parameters like tonnage and usage remain constant. The outcomes of this study can be utilized for swotting the electricity prices and policy making.