Industrial energy efficiency decision making

This paper presents a model to describe an industrial firmʹs energy efficiency decision making over time. The model posits seven stages, which range from no energy savings decision making to energy efficiency program implementation to steady state energy efficiency decision making. It is hypothesized that government energy-efficiency programs, such as the Industrial Assessment Center (IAC) Program funded by the US Department of Energy (DOE), can accelerate the speed industrial firms move through the modelʹs seven stages. Data were collected about firms’ stages in the model before and after receiving one of the three IAC benefits: a direct energy assessment; the employ of a student alumnus of the IAC Program; or use of energy efficiency information from an IAC website. It was found that each IAC benefit is associated with a significant positive change in firms’ energy efficiency decision making within a relatively short period of time.