IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i13p3071-d1419734.html
   My bibliography  Save this article

A Cooperation Model for EPC Energy Conservation Projects Considering Carbon Emission Rights: A Case from China

Author

Listed:
  • Haiyan Luo

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China
    Northwest Transportation Economics Research Center, Lanzhou 730070, China)

  • Junlin Pan

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China)

  • Yan Han

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China
    Institute of Geographic Sciences and National Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Zheng Li

    (National Bio Energy Co., Ltd., Beijing 100052, China)

  • Zhuo Cai

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China)

Abstract

This paper introduces an innovative cooperative model for energy efficiency retrofitting that incorporates carbon emission rights, addressing critical financial constraints in Energy Performance Contracting (EPC). By employing the fuzzy analytic hierarchy process (F-AHP) to evaluate risk assessment indicators and stakeholder contributions and utilizing the enhanced Shapley method for equitable benefit distribution, the model demonstrates significant improvements in financing and efficiency for energy conservation projects. The findings are as follows: (1) the energy efficiency retrofit model, which integrates carbon emission rights, effectively alleviates the financial constraints and fosters energy conservation and emission reduction in guaranteed-savings EPC projects; (2) the enhanced Shapley method is deemed appropriate for the equitable distribution of energy-saving benefits among stakeholders; (3) when compared with the traditional model and the benefit allocation-absent carbon rights, the energy-saving benefits of the energy efficiency retrofit model incorporating carbon emission rights are higher in individual and overall terms. The findings of this study offer a viable solution to financing challenges faced by stakeholders in such projects and delineate a pragmatic approach for enterprises to enhance energy efficiency and reduce emissions.

Suggested Citation

  • Haiyan Luo & Junlin Pan & Yan Han & Zheng Li & Zhuo Cai, 2024. "A Cooperation Model for EPC Energy Conservation Projects Considering Carbon Emission Rights: A Case from China," Energies, MDPI, vol. 17(13), pages 1-21, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:13:p:3071-:d:1419734
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/13/3071/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/13/3071/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
    2. Curtis, John & Devitt, Niamh & Whelan, Adele, 2015. "Location and Occupancy of Energy Inefficient Residential Properties," Papers RB2015/3/2, Economic and Social Research Institute (ESRI).
    3. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiaxin Huang & Xiaowen Fu & Xiaoxu Chen & Xin Wen, 2024. "Supply Chain Management for the Engineering Procurement and Construction (EPC) Model: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 16(22), pages 1-34, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qian, Dong & Guo, Ju’e, 2014. "Research on the energy-saving and revenue sharing strategy of ESCOs under the uncertainty of the value of Energy Performance Contracting Projects," Energy Policy, Elsevier, vol. 73(C), pages 710-721.
    2. Degirmenci, Tunahan & Yavuz, Hakan, 2024. "Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?," Energy, Elsevier, vol. 299(C).
    3. Polzin, Friedemann & Sanders, Mark & Serebriakova, Alexandra, 2021. "Finance in global transition scenarios: Mapping investments by technology into finance needs by source," Energy Economics, Elsevier, vol. 99(C).
    4. Zhu, Qingyuan & Sun, Chenhao & Xu, Chengzhen & Geng, Qianqian, 2025. "The impact of artificial intelligence on global energy vulnerability," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 15-27.
    5. Duch-Brown, Néstor & Rossetti, Fiammetta, 2020. "Digital platforms across the European regional energy markets," Energy Policy, Elsevier, vol. 144(C).
    6. Borozan, Dj, 2022. "Detecting a structure in the European energy transition policy instrument mix: What mix successfully drives the energy transition?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    7. Best, Rohan & Burke, Paul J., 2018. "Adoption of solar and wind energy: The roles of carbon pricing and aggregate policy support," Energy Policy, Elsevier, vol. 118(C), pages 404-417.
    8. Halleck-Vega, Solmaria & Mandel, Antoine & Millock, Katrin, 2018. "Accelerating diffusion of climate-friendly technologies: A network perspective," Ecological Economics, Elsevier, vol. 152(C), pages 235-245.
    9. Nolden, Colin & Sorrell, Steve & Polzin, Friedemann, 2016. "Catalysing the energy service market: The role of intermediaries," Energy Policy, Elsevier, vol. 98(C), pages 420-430.
    10. Barnea, Gil & Hagemann, Christian & Wurster, Stefan, 2022. "Policy instruments matter: Support schemes for renewable energy capacity in worldwide comparison," Energy Policy, Elsevier, vol. 168(C).
    11. Deleidi, Matteo & Mazzucato, Mariana & Semieniuk, Gregor, 2020. "Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects," Energy Policy, Elsevier, vol. 140(C).
    12. Sumarno, Theresia B. & Sihotang, Parulian & Prawiraatmadja, Widhyawan, 2022. "Exploring Indonesia's energy policy failures through the JUST framework," Energy Policy, Elsevier, vol. 164(C).
    13. Dalia Streimikiene & Tomas Balezentis, 2019. "Innovative Policy Schemes to Promote Renovation of Multi-Flat Residential Buildings and Address the Problems of Energy Poverty of Aging Societies in Former Socialist Countries," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    14. Ahmad I. Elshamy & Engy Elshazly & Olugbenga Timo Oladinrin & Muhammad Qasim Rana & Rasha Said Abd el-Lateef & Seif Tarek El-Badry & Mahmoud Elthakaby & Ahmed M. R. Elbaz & Khaled Dewidar & Iman El-Ma, 2022. "Challenges and Opportunities for Integrating RE Systems in Egyptian Building Stocks," Energies, MDPI, vol. 15(23), pages 1-23, November.
    15. Marino, Angelica & Bertoldi, Paolo & Rezessy, Silvia & Boza-Kiss, Benigna, 2011. "A snapshot of the European energy service market in 2010 and policy recommendations to foster a further market development," Energy Policy, Elsevier, vol. 39(10), pages 6190-6198, October.
    16. Shengmin Tan & Xu Wang & Chuanwen Jiang, 2019. "Privacy-Preserving Energy Scheduling for ESCOs Based on Energy Blockchain Network," Energies, MDPI, vol. 12(8), pages 1-16, April.
    17. Ke, Ming-Tsun & Yeh, Chia-Hung & Su, Cheng-Jie, 2017. "Cloud computing platform for real-time measurement and verification of energy performance," Applied Energy, Elsevier, vol. 188(C), pages 497-507.
    18. Bertoldi, Paolo & Boza-Kiss, Benigna, 2017. "Analysis of barriers and drivers for the development of the ESCO markets in Europe," Energy Policy, Elsevier, vol. 107(C), pages 345-355.
    19. Meng, Fanting, 2024. "Driving sustainable development: Fiscal policy and the promotion of natural resource efficiency," Resources Policy, Elsevier, vol. 90(C).
    20. Chen, Xiaoyu & Zheng, Lin & Cai, Guotian & Qi, Xiaoling & He, Jiaxin, 2025. "Global perspectives on wind energy innovation: Policy impacts and component-level analysis," Energy, Elsevier, vol. 319(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:13:p:3071-:d:1419734. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.