Organisational intention to invest in energy efficiency improvements and perceptions of energy efficiency in buildings

Abstract

The energy efficiency gap in buildings, meaning the gap between the potential and executed energy efficiency, is a prevailing paradox. Prior research on the phenomenon has focused on consumer and individual energy efficiency curtailment, while organisational behaviour and decision-making regarding energy efficiency investments in buildings is still a research area needing more attention. This study explores the organisational perceptions of the benefits of energy efficiency investments as well as factors affecting organisational intention to execute energy efficiency investments in buildings. A processual multimethod approach with both quantitative and qualitative methods was employed. This included a techno-economic analysis and emissions reduction calculations to determine case-specific benefits, an interview study exploring perceptions of these benefits, and regression analyses examining the factors affecting investment intentions. The organisations studied included two case municipalities and 97 companies from Finland.

The results showed that the financial resources or financial uncertainty of the investment did not have an impact on companies’ managers’ intentions to execute energy efficiency investments. The factors affecting the managers’ temporal orientation and willingness to pay for energy efficiency were more related to the attitudes and experiences of the manager and to the organisational conditions, supporting the behavioural and organisational explanations of the energy efficiency gap. The municipality property managers and planners still perceived the financial feasibility as the most important characteristic for good energy efficiency investments. It was also concluded that as the decision-making is a complicated nexus including non-rational aspects, the energy efficiency gap cannot be resolved simply by responding to the lack of information with more information. The main implications include the need for more studies on policy effects on organisations, as governmental pressure can reduce the willingness of organisations to pay for energy efficiency. Future research could also further assess the role of information in the decision-making process, and study how organisations can be motivated to execute feasible and sustainable energy efficiency investments in their buildings.