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Energy Efficiency and Sustainable Development: An Analysis of Financial Reliability in Energy Service Companies Industry

Author

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  • Gianpaolo Iazzolino

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, Building 46/C, 87036 Rende (CS), Italy)

  • Rossella Gabriele

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, Building 46/C, 87036 Rende (CS), Italy)

Abstract

The aim of this study is twofold: (i) At first, the authors would like to analyze the financial reliability of Energy Service Companies (ESCO) industry in Italy by using the Z - score model by Altman et al. (1995) and (ii) secondly, observing the trend of Z values from the year 2010 to the year 2014, they would try to connect these changes to specific business behaviors. An empirical research on a sample of 68 Italian ESCOs has been carried out. By analyzing balance sheet indicators, the authors identify the causes that entail the transition of firms from a specific solvency situation to another. Findings show that in most cases Z - score increased over the years thanks to the acquisition of White Certificates, that represents an efficient instrument to promote energy saving. Research results allow to hope in a future development of ESCO industry

Suggested Citation

  • Gianpaolo Iazzolino & Rossella Gabriele, 2016. "Energy Efficiency and Sustainable Development: An Analysis of Financial Reliability in Energy Service Companies Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 222-233.
    • Handle: RePEc:eco:journ2:2016-02-10
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    References listed on IDEAS

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    Cited by:

    1. Le Thanh Tiep & Ngo Quang Huan & Tran Thi Thuy Hong, 2021. "Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 7-22.
    2. G. Capece & Di Pillo Francesca & N. Levialdi & G. Perrotta, 2017. "Understanding How the Strategic Similarities between Energy Companies Influence the Post-mergers and Acquisitions Performances," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 78-89.
    3. Mohammed Issa Shahateet & Mohammed Khazali & Ghani Albaali & Nadia Sweis & Abdul Ghafoor Saidi, 2021. "Barriers to Improving Energy Efficiency: Insights from Energy Services Companies in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 155-164.
    4. Antonio Angelo Romano & Giuseppe Scandurra & Alfonso Carfora, 2016. "Estimating the Impact of Feed-in Tariff Adoption: Similarities and Divergences among Countries through a Propensity-score Matching Method," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 144-151.
    5. Iazzolino, Gianpaolo & Sorrentino, Nicola & Menniti, Daniele & Pinnarelli, Anna & De Carolis, Monica & Mendicino, Luca, 2022. "Energy communities and key features emerged from business models review," Energy Policy, Elsevier, vol. 165(C).

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    More about this item

    Keywords

    Financial Reliability; Energy Service Companies; Z-score; Italian Companies;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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