Under CopyrightFleiter, TobiasTobiasFleiterSchleich, JoachimJoachimSchleichRavivanpong, PloyplearnPloyplearnRavivanpongGruber, EdelgardEdelgardGruber2022-03-1229.11.20122012https://publica.fraunhofer.de/handle/publica/37699910.24406/publica-fhg-376999This paper empirically explores the factors driving the adoption of energy-efficiency measures by small and medium-sized enterprises (SMEs). Our analyses rely on cross-sectional data from a recent survey of SMEs which participated in a German energy audit program in 2008-2010. In general, our findings from the econometric analyses appear robust to alternative model specifications and are consistent with the theoretical and (still rather scarce) empirical literature on barriers to energy efficiency in SMEs. More specifically, high investment costs, which are captured by subjective and objective proxies, appear to impede the adoption of energy efficient measures, even if these measures are deemed profitable. Similarly, we find that lack of capital slows down the adoption of energy efficient measures, primarily for larger investments. Hence, investment subsidies or soft loans (for larger investments) may help accelerate the diffusion of energy efficiency measures in SMEs. Other barriers were not found to be statistically significant. Finally, our findings provide evidence that the quality of the energy audits affects the adoption of energy efficiency measures. Hence, effective regulation may involve quality standards for energy audits, templates for audit reports or mandatory monitoring of energy audits.enauditSMEsadoptionenergy auditenergy efficiency measuresbarrier303600conference paper