Stalled on the Road to the Market

Despite the apparent benefits of energy efficiency as an answer to problems in both environment and development arenas, the diffusion of highly efficient appliances in the developing countries has been limited. This paper describes a field experiment in Bombay designed to overcome barriers to increased energy efficiency through a programme in which high efficiency lamps were to be leased to households where their use would reduce peak evening demand. An examination of the practical progress of the project suggests several issues that proved critical to its success and are likely to be relevant in other attempts to improve energy efficiency in developing countries.