Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China
Hongquan Ruan (),
Xin Gao () and
Chaoxuan Mao ()
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Hongquan Ruan: School of Economics and Management, Tongji University, Shanghai 200092, China
Xin Gao: School of Economics and Management, Tongji University, Shanghai 200092, China
Chaoxuan Mao: School of Statistics and Mathematics, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
Sustainability, 2018, vol. 10, issue 5, 1-25
A lack of trust in Energy Service Company (ESCo) is the most critical factor affecting the development of Energy Performance Contracting (EPC) in China, compared with other constraints. One cannot easily estimate the energy-saving performance of an EPC project. Under that condition, lack of trust may cause the Energy-Consuming Unit (ECU) to suspect the energy-saving performance promised by the ESCo, thus leaving potentially profitable projects without necessary funding. Currently, specific studies taking an across-projects viewpoint on annual energy-saving performance of EPC projects in multiple subsectors, objectively and quantitatively, are lacking. This paper studies the regression relationships of annual energy-saving quantity in terms of revamping cost and the regression relationships of annual cost saving in terms of revamping cost. The regression results show that there are statistically significant correlations in the above relationships in the nine subsectors investigated. This is significant for ESCos and ECUs, because knowledge on energy-saving performance could contribute to EPC investment decisions and trust relationships between ESCos and ECUs. Then, a multiple linear regression model of revamping cost is set up to analyze its influencing factors. The model indicates that the subsector the sample belongs to, financing, registered capital of the ESCo, and contract period have significant effects on revamping cost. Thus, policy implications regarding innovation of EE promotion technology, clarifying ESCos’ exit mechanism, innovation of financing mechanism, and improving the market credit environment for promoting investment in EPC projects, are provided.
Keywords: energy performance contracting; trust; annual energy saving quantity; annual cost saving; investment (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:5:p:1666-:d:148221
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