2023, Vol. 5, Issue 12, Part A

The Perform Achieve Trade (PAT) is an innovative, market-based trading scheme announced by the Govt. of India in 2008 under its National Mission on Enhanced Energy Efficiency (NMEEE) in National Action Plan on Climate Change (NAPCC) for improving energy efficiency in industries. This scheme that covers energy conversion chain beginning from generation to the end use by industry and is considered as one of the most innovative actions undertaken by India towards Climate Change Mitigation. This paper analyses the PAT scheme using CMIE data. The analysis uses stochastic frontier analysis technique and calculates technical and efficiency and energy efficiency. The paper finds that there is potential of energy efficiency improvement in all the industries. It also tries to measure the impact in all industries under PAT cycle 1 specifically. It also finds that the larger firms are more energy efficient which might be due to economies of scale.