Transceivers with low energy consumption are indispensable components for wireless sensor networks. Energy efficient modulation techniques are of paramount importance for wireless sensor communication (WSC) where energy efficiency directly affects the lifetime of the sensor nodes. Also the type and behavior of pulse shaping filters influences the performance of the modulation scheme. In this paper an energy efficient modulation scheme, AQ-DBPSK for WSC in indoor environments is simulated and its performance is analyzed for Additive White Gaussian Noise (AWGN) and Rayleigh fading conditions. A comparative study of communication performance metrics like Magnitude Error, Phase Error, Bandwidth Efficiency and Bit Error Rate (BER) for BPSK, DBPSK and AQ-DBPSK using Raised Cosine and Root Raised Cosine filters are presented and analyzed. © 2013 IEEE.