Financial Mechanisms and Risk-Based Modeling of Energy Efficiency and Renewable Energy Adoption in Households

Olha Prokopenko (), Galyna Trypolska, Iryna Bashynska (), Oleksandr Telizhenko, Włodzimierz Strelcow, Yevhen Kovalenko, Svitlana Lytvynenko and Anna Woźna
Additional contact information
Olha Prokopenko: Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
Galyna Trypolska: Department of Energy and Climate Economics, State Organization “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine”, 01011 Kyiv, Ukraine
Iryna Bashynska: Department of Organizational Management and Social Capital, AGH University of Krakow, 30-059 Krakow, Poland
Oleksandr Telizhenko: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Włodzimierz Strelcow: Institute of Management, Pomeranian University, 76-200 Slupsk, Poland
Yevhen Kovalenko: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Svitlana Lytvynenko: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Anna Woźna: Department of Mechanical Engineering, Politechnika Wrocławska, 50-413 Wrocław, Poland

Energies, 2025, vol. 18, issue 21, 1-19

Abstract: The research aims to evaluate financial instruments on household uptake of energy efficiency and renewable energy towards different risk scenarios. The study addresses the problem of behavioral response to financial incentives when technological, financial, or institutional risks are perceived as continuous. Two sophisticated models were used for the analysis to quantify the effect of subsidies, green loans, personal income, energy costs, and governmental support for energy efficiency and renewable energy uptake. The research data came from the UK, Estonia, Germany, Poland, and Ukraine between 2022 and 2024. The results suggest that countries experiencing drops in risk indices with strong institutional support, such as Germany and the UK, had maximum improvement in energy efficiency (as high as 598.72 kWh saved a year) and renewable energy implementation rates (above 30%). Countries posing high risk, like Ukraine, require more potent and custom-made strategies to achieve comparable advances compared to a less-risky environment. The evidence indicates that even financial mechanisms are most fruitful if they are complemented by risk management tactics. With these results, policymakers can proceed with useful information in formulating economically appropriate strategies that rely on realistic assumptions of behavior.

Keywords: energy efficiency; renewable energy adoption; financial mechanisms; risk perception; household energy policy; econometric modeling (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
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/21/5799/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/21/5799/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:18:y:2025:i:21:p:5799-:d:1786763

Access Statistics for this article

Energies is currently edited by Ms. Cassie Shen

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().