Unpacking Market Barriers to Energy Efficiency in Emerging Economies: Policy Insights and a Business Model Perspective from Jordan
Rund Awwad,
Scott Dwyer and
Andrea Trianni ()
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Rund Awwad: School of Mechanical and Mechatronic Engineering, University of Technology Sydney, Sydney, NSW 2007, Australia
Scott Dwyer: Institute for Sustainable Futures, University of Technology Sydney, Sydney, NSW 2007, Australia
Andrea Trianni: School of Mechanical and Mechatronic Engineering, University of Technology Sydney, Sydney, NSW 2007, Australia
Energies, 2025, vol. 18, issue 11, 1-26
Abstract:
Energy efficiency (EE) remains an underexploited opportunity in many developing economies, where a complex interplay of policy, institutional, and market-related challenges limit its implementation at scale. This study explores the structural, economic, and policy-related constraints affecting the EE market in Jordan, a country with a high dependence on imported energy. Using a multi-framework approach, we apply the political, economic, social, technological, environmental, and legal (PESTEL) framework to categorize these barriers, complemented by Brown’s business model (BM) typology to enhance the analytical depth. Primary data were collected through semi-structured interviews with key market actors. The findings highlight issues such as economic volatility, regulatory fragmentation, and the structural biases associated with donor-driven interventions, which contribute to an uneven and loosely regulated market environment in which businesses face significant scaling challenges. This study reflects on international experience to explore how strategies from other contexts might inform markets’ adaptation in emerging economies. This study concludes with targeted policy recommendations aimed at clarifying regulatory pathways and supporting more effective market delivery. This research contributes to ongoing policy discourse by highlighting how context-specific BM innovations might help address systemic barriers, while potentially supporting national energy goals.
Keywords: energy efficiency; residential energy retrofit; PESTEL barriers; business models; developing countries; policy reform; Jordan (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:18:y:2025:i:11:p:2944-:d:1671175
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