Adoption of low-cost energy efficiency measures in the tertiary sector

This paper empirically explores factors driving the adoption of low cost energy efficiency measures in the tertiary sector which mainly consists of public and private services, trade, commerce and some small industries. The measures considered include switching off installations or lighting, managing energy use, and routinely considering energy efficiency for new purchases. Our statistical analysis employs single and multivariate probit models relying on more than 1500 observations from a recent representative survey of the tertiary sector in Germany. The findings suggest that the landlord-tenant dilemma holds for the adoption of all low-cost energy efficiency measures considered. They further imply that financial incentives such as higher energy prices accelerate the diffusion of low-cost energy measures. Our findings also provide some evidence that knowledge transfer from the mother company to a subsidiary enhances the diffusion of low-cost energy efficiency measures. Likewise, public-sector organizations are more likely to adopt energy management. By and large though, sectoral heterogeneity appears to have little impact on the adoption of low-cost energy efficiency measures.