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Climate-Driven Sustainable Energy Investments: Key Decision Factors for a Low-Carbon Transition Using a Multi-Criteria Approach

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  • Charikleia Karakosta

    (Decision Support Systems Laboratory, Energy Policy Unit (EPU-NTUA), School of Electrical and Computer Engineering, National Technical University of Athens, 9, Iroon Polytechniou Str., Zografou, 15780 Athens, Greece
    Department of Business Administration, University of Macedonia, Egnatia Street 156, 54636 Thessaloniki, Greece)

  • Jason Papathanasiou

    (Department of Business Administration, University of Macedonia, Egnatia Street 156, 54636 Thessaloniki, Greece)

Abstract

Currently, the need for a clean transition has made the upscaling of sustainable energy investment projects imperative. This paper addresses the increasing importance of sustainable energy investment projects in the context of climate change and the urgent need for a global energy transition. Given the complexity of decision-making in this field, a multi-criteria decision-making (MCDM) approach is employed to assess the main criteria considered by project developers and financial institutions. Using the Analytic Hierarchy Process (AHP) method, eight criteria are identified and evaluated. Results highlight differing priorities between project developers and investors, emphasizing the need for adaptable approaches to accelerate sustainable energy investments. The study underscores the importance of understanding diverse stakeholder preferences and priorities in formulating effective strategies and managing associated risks to effectively promote sustainable energy projects. Future research should focus on real-life case studies and policy assessments to further enhance the understanding of sustainable energy investment dynamics.

Suggested Citation

  • Charikleia Karakosta & Jason Papathanasiou, 2024. "Climate-Driven Sustainable Energy Investments: Key Decision Factors for a Low-Carbon Transition Using a Multi-Criteria Approach," Energies, MDPI, vol. 17(21), pages 1-13, November.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:21:p:5515-:d:1513875
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    References listed on IDEAS

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