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Catalysing corporate energy efficiency investment: Financial and regulatory factors

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  • Tueske, Annamaria
  • Lasheras Sancho, Marta

Abstract

Over the past decades, a growing body of research has examined the structural and behavioral barriers that hinder firms from adopting cost-effective technologies to improve energy efficiency. In this paper, we draw on firm-level data from the EIB Investment Survey combined with energy efficiency regulatory indicators from the World Bank's RISE database to analyse two key strategic decisions: firms' likelihood of investing in energy efficiency, and the share of total investment allocated to such measures. Accounting for self-selection into energy efficiency investments, we find that financial constraints, particularly among SMEs, can limit firms' ability toundertake these long-term investments. Moreover, the share of investment allocated to energy efficiency is positively associated with the strength of a country's incentive-based energy efficiency regulatory framework.

Suggested Citation

  • Tueske, Annamaria & Lasheras Sancho, Marta, 2026. "Catalysing corporate energy efficiency investment: Financial and regulatory factors," EIB Working Papers 2026/03, European Investment Bank (EIB).
    • Handle: RePEc:zbw:eibwps:338073
    DOI: 10.2867/2662937
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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