Status of Electricity Consumption of West Bengal: A Decomposition Analysis

As one of the major sources of energy, electricity plays a crucial role in all sectors of an economy; yet consumption of electricity leads to emissions of greenhouse gases (GHGs), which in turn causes climate change. Energy, and more specifically electricity, consumption, has been growing rapidly and is expected to continue to grow in a number of states in India. In this context, it is important to see how an initiative to reduce energy consumption can be taken at the state level. In this context, the present study focuses on the state of West Bengal. To design appropriate energy efficiency policies, understanding the causal factors of increasing electricity demand is important. Decomposition analysis helps us to identify these factors and design a policy towards an energy-efficient and low-carbon future. This article reviews electricity consumption by individual sectors (agriculture, industry, transport, and commerce) to determine appropriate energy efficiency policies for the future.