The pricing mechanism of the building energy efficiency services based on principal-agent theory

Through selecting principal-agent theory to analyze the building energy efficiency services, this paper points out that the current contract pricing process does not fully consider the asymmetric information, there is no rational pricing mechanism adopted to avoid the adverse selection and moral hazard. We find that the specific risk assessment can be analyzed by the dynamic risk-sharing model. The risk assessment is determined by the risk characteristics of different project and the contractors´ risk aversion.