IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i11p2944-d1671175.html
   My bibliography  Save this article

Unpacking Market Barriers to Energy Efficiency in Emerging Economies: Policy Insights and a Business Model Perspective from Jordan

Author

Listed:
  • 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)

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.

Suggested Citation

  • Rund Awwad & Scott Dwyer & Andrea Trianni, 2025. "Unpacking Market Barriers to Energy Efficiency in Emerging Economies: Policy Insights and a Business Model Perspective from Jordan," Energies, MDPI, vol. 18(11), pages 1-26, June.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:11:p:2944-:d:1671175
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/11/2944/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/11/2944/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rolando Biere-Arenas & Silvia Spairani-Berrio & Yolanda Spairani-Berrio & Carlos Marmolejo-Duarte, 2021. "One-Stop-Shops for Energy Renovation of Dwellings in Europe—Approach to the Factors That Determine Success and Future Lines of Action," Sustainability, MDPI, vol. 13(22), pages 1-24, November.
    2. Abdelrahman Azzuni & Arman Aghahosseini & Manish Ram & Dmitrii Bogdanov & Upeksha Caldera & Christian Breyer, 2020. "Energy Security Analysis for a 100% Renewable Energy Transition in Jordan by 2050," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    3. Kindström, Daniel & Ottosson, Mikael, 2016. "Local and regional energy companies offering energy services: Key activities and implications for the business model," Applied Energy, Elsevier, vol. 171(C), pages 491-500.
    4. Meredith Fowlie & Robyn Meeks, 2021. "The Economics of Energy Efficiency in Developing Countries," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(2), pages 238-260.
    5. 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.
    6. Trianni, Andrea & Leak, Jarrod & Hasan, A S M Monjurul, 2025. "Switching on ESCOs: Barriers, challenges and opportunities for the development of Australia's ESCO market," Energy Policy, Elsevier, vol. 199(C).
    7. Hannon, Matthew J. & Bolton, Ronan, 2015. "UK Local Authority engagement with the Energy Service Company (ESCo) model: Key characteristics, benefits, limitations and considerations," Energy Policy, Elsevier, vol. 78(C), pages 198-212.
    8. Brown, Donal & Hall, Stephen & Martiskainen, Mari & Davis, Mark E., 2022. "Conceptualising domestic energy service business models: A typology and policy recommendations," Energy Policy, Elsevier, vol. 161(C).
    9. Ahmad Alshwawra & Ahmad Almuhtady, 2020. "Impact of Regional Conflicts on Energy Security in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 45-50.
    10. Katris, Antonios & Turner, Karen, 2021. "Can different approaches to funding household energy efficiency deliver on economic and social policy objectives? ECO and alternatives in the UK," Energy Policy, Elsevier, vol. 155(C).
    11. Benjamin Saunders & Julius Sim & Tom Kingstone & Shula Baker & Jackie Waterfield & Bernadette Bartlam & Heather Burroughs & Clare Jinks, 2018. "Saturation in qualitative research: exploring its conceptualization and operationalization," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1893-1907, July.
    12. Schuetze, Benjamin & Hussein, Hussam, 2023. "The geopolitical economy of an undermined energy transition: The case of Jordan," Energy Policy, Elsevier, vol. 180(C).
    13. 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.
    14. Sameh Monna & Ramez Abdallah & Adel Juaidi & Aiman Albatayneh & Antonio Jesús Zapata-Sierra & Francisco Manzano-Agugliaro, 2022. "Potential Electricity Production by Installing Photovoltaic Systems on the Rooftops of Residential Buildings in Jordan: An Approach to Climate Change Mitigation," Energies, MDPI, vol. 15(2), pages 1-15, January.
    15. 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.
    16. Bolton, Ronan & Hannon, Matthew, 2016. "Governing sustainability transitions through business model innovation: Towards a systems understanding," Research Policy, Elsevier, vol. 45(9), pages 1731-1742.
    Full references (including those not matched with items on IDEAS)

    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. Brown, Donal & Hall, Stephen & Martiskainen, Mari & Davis, Mark E., 2022. "Conceptualising domestic energy service business models: A typology and policy recommendations," Energy Policy, Elsevier, vol. 161(C).
    2. Trianni, Andrea & Leak, Jarrod & Hasan, A S M Monjurul, 2025. "Switching on ESCOs: Barriers, challenges and opportunities for the development of Australia's ESCO market," Energy Policy, Elsevier, vol. 199(C).
    3. Joanna Kurowska-Pysz & Grzegorz Kunikowski, 2021. "The ESCO Formula as Support for Public and Commercial Energy Projects in Poland," Energies, MDPI, vol. 14(23), pages 1-23, December.
    4. Sovacool, Benjamin K. & Lipson, Matthew M. & Chard, Rose, 2019. "Temporality, vulnerability, and energy justice in household low carbon innovations," Energy Policy, Elsevier, vol. 128(C), pages 495-504.
    5. 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.
    6. Kangas, Hanna-Liisa & Lazarevic, David & Kivimaa, Paula, 2018. "Technical skills, disinterest and non-functional regulation: Barriers to building energy efficiency in Finland viewed by energy service companies," Energy Policy, Elsevier, vol. 114(C), pages 63-76.
    7. Dmitriy Karamov & Pavel Ilyushin & Ilya Minarchenko & Sergey Filippov & Konstantin Suslov, 2023. "The Role of Energy Performance Agreements in the Sustainable Development of Decentralized Energy Systems: Methodology for Determining the Equilibrium Conditions of the Contract," Energies, MDPI, vol. 16(6), pages 1-12, March.
    8. Klinke, Sandra, 2018. "The determinants for adoption of energy supply contracting: Empirical evidence from the Swiss market," Energy Policy, Elsevier, vol. 118(C), pages 221-231.
    9. Serena Sandri & Hussam Hussein & Nooh Alshyab, 2020. "Sustainability of the Energy Sector in Jordan: Challenges and Opportunities," Sustainability, MDPI, vol. 12(24), pages 1-25, December.
    10. Michael Hamwi & Iban Lizarralde, 2019. "Demand-side management and renewable energy business models for energy transition A systematic review," Post-Print hal-02448505, HAL.
    11. Dmitriy N. Karamov & Pavel V. Ilyushin & Konstantin V. Suslov, 2022. "Electrification of Rural Remote Areas Using Renewable Energy Sources: Literature Review," Energies, MDPI, vol. 15(16), pages 1-13, August.
    12. Polzin, Friedemann & Nolden, Colin & von Flotow, Paschen, 2018. "Drivers and barriers for municipal retrofitting activities – Evidence from a large-scale survey of German local authorities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 99-108.
    13. Simon Hilpert & Franziska Dettner & Ahmed Al-Salaymeh, 2020. "Analysis of Cost-Optimal Renewable Energy Expansion for the Near-Term Jordanian Electricity System," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    14. Athena Piterou & Anne‐Marie Coles, 2021. "A review of business models for decentralised renewable energy projects," Business Strategy and the Environment, Wiley Blackwell, vol. 30(3), pages 1468-1480, March.
    15. Carvallo, Juan Pablo & Murphy, Sean P. & Stuart, Elizabeth & Larsen, Peter H. & Goldman, Charles, 2019. "Evaluating project level investment trends for the U.S. ESCO industry: 1990–2017," Energy Policy, Elsevier, vol. 130(C), pages 139-161.
    16. Nolden, Colin & Banks, Nicholas & Irwin, Jack & Wallom, David & Parrish, Bryony, 2025. "The economics of flexibility service contracting in local energy markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 215(C).
    17. Cagno, Enrico & Franzò, Simone & Storoni, Elena & Trianni, Andrea, 2022. "A characterisation framework of energy services offered by energy service companies," Applied Energy, Elsevier, vol. 324(C).
    18. Gonçalves, Luisa & Patrício, Lia, 2022. "From smart technologies to value cocreation and customer engagement with smart energy services," Energy Policy, Elsevier, vol. 170(C).
    19. Brown, Donal & Hall, Stephen & Davis, Mark E., 2019. "Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK," Energy Policy, Elsevier, vol. 135(C).
    20. Brinker, Laura & Satchwell, Andrew J., 2020. "A comparative review of municipal energy business models in Germany, California, and Great Britain: Institutional context and forms of energy decentralization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(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:18:y:2025:i:11:p:2944-:d:1671175. 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.