Energy Efficiency Contracting in Supply Chains Under Asymmetric Bargaining Power

Shantia, Ali; Aflaki, Sam; Masini, Andrea

doi:10.2139/ssrn.2660055

Cited by 1 publication

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“…Few papers focus on the decisionmaking process in a competitive environment and model the interaction among the energy user, ESCO, and the government by using game-theoretic models, e.g. (Shang et al 2015;Zhou and Huang 2016;Shantia et al 2018;Yi and Li 2018) among others. In these papers, a particular contract type is assumed and the interaction among different decision makers is analyzed by using the contract.…”

Section: Past Workmentioning

confidence: 99%

Design of balanced energy savings performance contracts

Tan

2019

International Journal of Production Research

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Energy savings performance contracts between the energy users and the energy service companies (ESCO) are used to finance energy efficiency investments by using the future energy savings that will result from these investments. We present an analytical model to characterize the energy savings performance contracts and discuss how the risks of estimating the energy savings affect the energy user and the service provider. This characterization allows determination of the contract parameters for a balanced contract with the information about the energy savings that are expected from the planned energy efficiency investments. Since it is difficult to get the statistical information about the energy savings before investing in an energy efficiency project, we develop a distribution-free contract that sets the guaranteed energy savings level based on the mean and the standard deviation of the energy savings and the profit-sharing ratio between the ESCO and the energy user. We show that a simple distribution-free balanced contract performs satisfactorily when the distribution of the energy savings is not known and its mean and the standard deviation are estimated with error. Our analytical results show that the energy savings contracts with the right parameters can mitigate the risks related to realization of the anticipated energy savings.

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Section: Past Workmentioning

confidence: 99%

Design of balanced energy savings performance contracts

Tan

2019

International Journal of Production Research

View full text Add to dashboard Cite

show abstract

Energy Efficiency Contracting in Supply Chains Under Asymmetric Bargaining Power

Cited by 1 publication

References 20 publications

Design of balanced energy savings performance contracts

Design of balanced energy savings performance contracts

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