Catalysing corporate energy efficiency investment: Financial and regulatory factors

Annamaria Tueske and Marta Lasheras Sancho

No 2026/03, EIB Working Papers from European Investment Bank (EIB)

Abstract: Over the past decades, a growing body of research has examined the structural and behavioral barriers that hinder firms from adopting cost-effective technologies to improve energy efficiency. In this paper, we draw on firm-level data from the EIB Investment Survey combined with energy efficiency regulatory indicators from the World Bank's RISE database to analyse two key strategic decisions: firms' likelihood of investing in energy efficiency, and the share of total investment allocated to such measures. Accounting for self-selection into energy efficiency investments, we find that financial constraints, particularly among SMEs, can limit firms' ability toundertake these long-term investments. Moreover, the share of investment allocated to energy efficiency is positively associated with the strength of a country's incentive-based energy efficiency regulatory framework.

Keywords: Energy efficiency; firm investment; Europe; access to finance; regulation; green transition (search for similar items in EconPapers)
JEL-codes: D22 L25 O33 Q40 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:eibwps:338073

DOI: 10.2867/2662937

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