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A Cooperation Model for EPC Energy Conservation Projects Considering Carbon Emission Rights: A Case from China

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  • Haiyan Luo

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China
    Northwest Transportation Economics Research Center, Lanzhou 730070, China)

  • Junlin Pan

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China)

  • Yan Han

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China
    Institute of Geographic Sciences and National Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Zheng Li

    (National Bio Energy Co., Ltd., Beijing 100052, China)

  • Zhuo Cai

    (School of Economics and Management, Lanzhou Jiaotong University, Lanzhou 730070, China)

Abstract

This paper introduces an innovative cooperative model for energy efficiency retrofitting that incorporates carbon emission rights, addressing critical financial constraints in Energy Performance Contracting (EPC). By employing the fuzzy analytic hierarchy process (F-AHP) to evaluate risk assessment indicators and stakeholder contributions and utilizing the enhanced Shapley method for equitable benefit distribution, the model demonstrates significant improvements in financing and efficiency for energy conservation projects. The findings are as follows: (1) the energy efficiency retrofit model, which integrates carbon emission rights, effectively alleviates the financial constraints and fosters energy conservation and emission reduction in guaranteed-savings EPC projects; (2) the enhanced Shapley method is deemed appropriate for the equitable distribution of energy-saving benefits among stakeholders; (3) when compared with the traditional model and the benefit allocation-absent carbon rights, the energy-saving benefits of the energy efficiency retrofit model incorporating carbon emission rights are higher in individual and overall terms. The findings of this study offer a viable solution to financing challenges faced by stakeholders in such projects and delineate a pragmatic approach for enterprises to enhance energy efficiency and reduce emissions.

Suggested Citation

  • Haiyan Luo & Junlin Pan & Yan Han & Zheng Li & Zhuo Cai, 2024. "A Cooperation Model for EPC Energy Conservation Projects Considering Carbon Emission Rights: A Case from China," Energies, MDPI, vol. 17(13), pages 1-21, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:13:p:3071-:d:1419734
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    References listed on IDEAS

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    1. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
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    Cited by:

    1. Jiaxin Huang & Xiaowen Fu & Xiaoxu Chen & Xin Wen, 2024. "Supply Chain Management for the Engineering Procurement and Construction (EPC) Model: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 16(22), pages 1-34, November.

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