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Keywords = household emission sector

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17 pages, 594 KiB  
Article
Diversifying Rural Economies: Identifying Factors That Discourage Primary Producers from Engaging in Emerging Carbon and Environmental Offsetting Markets in Queensland, Australia
by Lila Singh-Peterson, Fynn De Daunton, Andrew Drysdale, Lorinda Otto, Wim Linström and Ben Lyons
Sustainability 2025, 17(15), 6847; https://doi.org/10.3390/su17156847 - 28 Jul 2025
Viewed by 243
Abstract
Commitments to carbon neutrality at both international and national levels have spurred the development of market-based mechanisms that incentivize low-carbon technologies while penalizing emissions-intensive activities. These policies have wide ranging impacts for the Australian agricultural sector, and associated rural communities, where the majority [...] Read more.
Commitments to carbon neutrality at both international and national levels have spurred the development of market-based mechanisms that incentivize low-carbon technologies while penalizing emissions-intensive activities. These policies have wide ranging impacts for the Australian agricultural sector, and associated rural communities, where the majority of carbon credits and biodiversity credits are sourced in Australia. Undeniably, the introduction of carbon and environmental markets has created the opportunity for an expansion and diversification of local, rural economies beyond a traditional agricultural base. However, there is much complexity for the agricultural sector to navigate as environmental markets intersect and compete with food and fiber livelihoods, and entrenched ideologies of rural identity and purpose. As carbon and environmental markets focused on primary producers have expanded rapidly, there is little understanding of the associated situated and relational impacts for farming households and rural communities. Nor has there been much work to identify the barriers to engagement. This study explores these tensions through qualitative research in Stanthorpe and Roma, Queensland, offering insights into the barriers and benefits of market engagement. The findings inform policy development aimed at balancing climate goals with agricultural sustainability and rural community resilience. Full article
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21 pages, 1934 KiB  
Article
Energy Conservation and Carbon Emission Reduction Potentials of Major Household Appliances in China Leveraging the LEAP Model
by Runhao Guo, Aijun Xu and Heng Li
Buildings 2025, 15(15), 2615; https://doi.org/10.3390/buildings15152615 - 23 Jul 2025
Viewed by 289
Abstract
Household appliances constitute the second largest source of residential energy consumption in China, accounting for over 20% of the total and exhibiting a steady growth trend. Despite their substantial impact on energy demand and carbon emissions, a comprehensive analysis of the current status [...] Read more.
Household appliances constitute the second largest source of residential energy consumption in China, accounting for over 20% of the total and exhibiting a steady growth trend. Despite their substantial impact on energy demand and carbon emissions, a comprehensive analysis of the current status and future trends of household appliances in China is still lacking. This study employs the Long-Range Energy Alternatives Planning (LEAP) system to model energy consumption and carbon emissions for five major household appliances (air conditioners, refrigerators, washing machines, TVs, and water heaters) from 2022 to 2052. Three scenarios were analyzed: a Reference (REF) scenario (current trends), an Existing Policy Option (EPO) scenario (current energy-saving measures), and a Further Strengthening (FUR) scenario (enhanced efficiency measures). Key results show that by 2052, the EPO scenario achieves cumulative savings of 1074.8 billion kWh and reduces emissions by 580.7 million metric tons of CO2 equivalent compared to REF. The FUR scenario yields substantially greater benefits, demonstrating the significant potential of strengthened policies. This analysis underscores the critical role of improving appliance energy efficiency and provides vital insights for policymakers and stakeholders aiming to reduce residential sector emissions. Full article
(This article belongs to the Section Building Energy, Physics, Environment, and Systems)
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19 pages, 570 KiB  
Article
Does Government Environmental Expenditure Reduce Residential Energy Consumption in Canada? Evidence from Provincial Panel Data
by Belayet Hossain
Sustainability 2025, 17(13), 6102; https://doi.org/10.3390/su17136102 - 3 Jul 2025
Viewed by 283
Abstract
The residential sector has the potential to significantly impact overall energy consumption and emissions due to the long lifespan of residential buildings and the difficulty of outsourcing residential emissions to other nations. This research primarily aimed to investigate the impact of government expenditure [...] Read more.
The residential sector has the potential to significantly impact overall energy consumption and emissions due to the long lifespan of residential buildings and the difficulty of outsourcing residential emissions to other nations. This research primarily aimed to investigate the impact of government expenditure on environmental protection in reducing household energy consumption, thus contributing to Canada’s environmental quality. We utilized panel data from ten Canadian provinces covering the period from 1995 to 2020. To estimate household energy demand, both conceptual and empirical models were developed. Advanced second-generation econometric techniques were applied, including appropriate unit root and co-integration tests. Long-term relationships were analyzed using the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methodologies. The long-term estimates indicate that all explanatory variables align with theoretical expectations and are highly significant. The findings reveal that government funding for environmental protection, along with province-specific environmental policies, contributes to reducing per capita residential energy consumption, which is essential for enhancing energy efficiency. Additionally, factors such as weather, income, demographic shifts, and energy prices are found to influence household energy consumption trends. These outcomes highlight the importance of increased government funding for environmental protection and underscore the need for provinces to implement context-specific environmental policies. This approach is essential in the effort to reduce household energy consumption across Canada. Full article
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25 pages, 1276 KiB  
Article
Analyzing Energy Poverty and Its Determinants in Greece: Implications for Policy
by Yannis Sarafidis, Sevastianos Mirasgedis, Nikos Gakis, Elpida Kalfountzou, Dimitris Kapetanakis, Elena Georgopoulou, Christos Tourkolias and Dimitris Damigos
Sustainability 2025, 17(12), 5645; https://doi.org/10.3390/su17125645 - 19 Jun 2025
Viewed by 475
Abstract
Energy and environmental policies in the sector of buildings aim to achieve climate targets while ensuring affordable energy services for households. This study uses the Greek residential sector as a case study and focuses on energy poverty, examining both established and novel energy [...] Read more.
Energy and environmental policies in the sector of buildings aim to achieve climate targets while ensuring affordable energy services for households. This study uses the Greek residential sector as a case study and focuses on energy poverty, examining both established and novel energy poverty indicators for its measurement, analyzing the key determinants of energy poverty, and developing statistical models to identify energy-poor households. The same models are also used for assessing the effectiveness of policies and measures implemented or planned to address energy poverty with a view to develop synergies with policies aiming to reduce greenhouse gas emissions. Energy poverty levels in Greece ranged from 8.4% to 19.6% in 2021, depending on the energy poverty measure used. The evaluation of the policies aiming at tackling energy poverty showed that deep energy renovations, combined with space heating system upgrades, can reduce energy poverty by 69–99%. Shallow energy renovations and upgrades of space heating systems, implemented either individually or in combination, are less effective. Finally, while the various subsidy schemes for vulnerable households do not significantly affect energy poverty levels, they play a critical role in alleviating the depth of energy poverty and improving the quality of energy services provided to households. Full article
(This article belongs to the Special Issue Tackling Energy Poverty and Vulnerability Through Energy Efficiency)
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26 pages, 831 KiB  
Article
How (Co-)Ownership in Renewables Improves Heating Usage Behaviour and the Willingness to Adopt Energy-Efficient Technologies—Data from German Households
by Renan Magalhães, Jens Lowitzsch and Federico Narracci
Energies 2025, 18(12), 3114; https://doi.org/10.3390/en18123114 - 13 Jun 2025
Viewed by 645
Abstract
In the housing sector emission reduction builds on a shift from fossil fuels to renewable energy sources and increasing the efficiency of energy usage, with heating playing a dominant role in comparison to that of electricity. For electricity production in the residential sector, [...] Read more.
In the housing sector emission reduction builds on a shift from fossil fuels to renewable energy sources and increasing the efficiency of energy usage, with heating playing a dominant role in comparison to that of electricity. For electricity production in the residential sector, research shows that different settings of (co-)ownership in renewables are linked to a greater tendency to invest in energy-efficient devices or to adopt more energy-conscious behaviours. The empirical analysis demonstrates that fully-fledged prosumers, i.e., consumers who have the option to choose between self-consumption and selling to third parties or the grid, exhibit a higher tendency to invest in energy efficiency and that only this group manifests a greater likelihood of engaging in conscious-energy consumption behaviour. This paper extends the analysis to include heating in the residential sector. The study conducted an ANCOVA based on a sample of 2585 German households. The findings show that, depending on the (co-)ownership setting, the willingness to invest and to adopt energy-efficient practices grows considerably. Consumer-sellers demonstrate the highest willingness to invest and adapt energy conscious behaviour. Furthermore, regarding heating in particular, self-consumers are also inclined to invest and engage in energy-savings behaviour. Full article
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29 pages, 1728 KiB  
Article
Who Can Afford to Decarbonize? Early Insights from a Socioeconomic Model for Energy Retrofit Decision-Making
by Daniela Tavano, Francesca Salvo, Marilena De Simone, Antonio Bilotta and Francesco Paolo Del Giudice
Real Estate 2025, 2(2), 6; https://doi.org/10.3390/realestate2020006 - 11 Jun 2025
Cited by 1 | Viewed by 387
Abstract
The real estate sector is steadily moving towards zero-emission buildings, driven by EU policies to achieve near-zero energy (NZEB) buildings by 2050. In Italy, more than 70% of residential buildings fall into the lower energy classes, and this mainly affects low-income households. As [...] Read more.
The real estate sector is steadily moving towards zero-emission buildings, driven by EU policies to achieve near-zero energy (NZEB) buildings by 2050. In Italy, more than 70% of residential buildings fall into the lower energy classes, and this mainly affects low-income households. As a result, the decarbonisation of the real estate sector presents both technical and socio-economic obstacles. Building on these premises, this study introduces the Retrofit Optimization Problem (ROP), a methodological framework adapted from the Multidimensional Knapsack Problem (MdKP). This method is used in this study to conduct a qualitative analysis of accessibility to retrofit between different socio-economic groups, integrating constraints to simulate restructuring capacity based on different incomes. The results show significant disparities: although many retrofit strategies can meet regulatory energy performance targets, only a small number are financially sustainable for low-income households. In addition, interventions with the greatest environmental impact remain inaccessible to vulnerable groups. These preliminary results highlight important equity issues in the energy transition, indicating the need for specific and income-sensitive policies to prevent decarbonisation efforts from exacerbating social inequalities or increasing the risk of assets being stranded in the housing market. Full article
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15 pages, 1263 KiB  
Article
Optimizing Petroleum Products Distribution Centers Using GFA and AnyLogistix Simulation: A Case Study
by Moqbel S. Jaffal, Amjad B. Abdulghafour, Omar Ayadi and Faouzi Masmoudi
Logistics 2025, 9(2), 63; https://doi.org/10.3390/logistics9020063 - 25 May 2025
Viewed by 850
Abstract
Background: The Petroleum Products Distribution Company in Anbar Governorate is responsible for securing and distributing petroleum products to various sectors, including transportation, agriculture, industry, and households, through over 100 gas stations. The company has faced significant challenges due to the destruction of [...] Read more.
Background: The Petroleum Products Distribution Company in Anbar Governorate is responsible for securing and distributing petroleum products to various sectors, including transportation, agriculture, industry, and households, through over 100 gas stations. The company has faced significant challenges due to the destruction of its infrastructure caused by past conflicts. These challenges have necessitated strategic decisions to design an efficient distribution network. Methods: This study aimed to assist the company in selecting the optimal location for a distribution center by evaluating four potential locations. Three of the proposed locations were suggested by the company: Ramadi, Habbaniyah, and Haqlaniyah. The fourth location, referred to as the GFA DC location, was determined through a greenfield analysis (GFA) experiment using AnyLogistix software (version 3.2.1. PLE) ALX. The simulation experiment in ALX was conducted using product data, fuel station locations, order quantities, distribution center data, and transportation and emissions data. Results: The simulation results, taking into account both practical and regulatory constraints, indicated that the Ramadi location was the most suitable for establishing the new distribution center. Conclusions: Based on the analysis, the study concluded that the Ramadi location was the optimal site for building the petroleum products distribution center in Anbar Governorate, offering a solution that aligns with the company’s goals of improving distribution efficiency and overcoming existing logistical challenges. Full article
(This article belongs to the Topic Decision Science Applications and Models (DSAM))
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24 pages, 4211 KiB  
Article
Analysis of Greenhouse Gas Emissions Drivers in Poland and the EU: Correlation and Regression-Based Assessment
by Dorota Gawrońska and Anna Mularczyk
Sustainability 2025, 17(10), 4345; https://doi.org/10.3390/su17104345 - 11 May 2025
Viewed by 587
Abstract
The growing global interest in mitigating climate change implies an increased importance of sustainable development to achieve greenhouse gas emission reductions. The paper analyses the impact of key economic and environmental factors, such as the share of renewable energy, gross domestic product (GDP), [...] Read more.
The growing global interest in mitigating climate change implies an increased importance of sustainable development to achieve greenhouse gas emission reductions. The paper analyses the impact of key economic and environmental factors, such as the share of renewable energy, gross domestic product (GDP), fossil fuel consumption, final energy consumption in households and industry, and forest area, on greenhouse gas (GHG) emissions in the European Union (consisting of 27 members) and Poland for comparison—for the period from 1990 to 2023. The study fills a gap in identifying the cross-sectoral determinants of greenhouse gas emissions in the EU, focusing specifically on Poland and the whole EU region since the beginning of the European Union. The research involved the implementation of statistical analyses, dynamic analyses, correlation analyses, and regression analyses. The results showed an increase in the share of renewable energy, GDP, and forest area, which was negatively correlated with the volume of GHG emissions. In contrast, final fossil fuel consumption and final energy consumption in industry and households (to a slightly lesser extent) were also significantly but positively correlated. It is worth noting that the strength of calculated relationships differed for the EU and Poland. The study revealed trends and correlations that affect GHG and are relevant to policy implications for EU climate goals. Considering the various determinants of GHG emissions and Poland’s unique situation (high dependence on coal and a large share of heavy industry), conclusions were formulated for Poland’s and the EU’s climate policies in the context of the European Green Deal. Full article
(This article belongs to the Special Issue Open Innovation in Green Products and Performance Research)
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21 pages, 5209 KiB  
Article
Evaluation of CO2 Emissions Reduction in the Japanese Residential Sector Through Energy-Saving Scenarios Based on Large-Scale Survey Data
by Yujiro Hirano, Yukiko Yoshida, Takahiro Yoshida, Yoshiki Yamagata, Suguru Mizutani and Ji Xuan
Energies 2025, 18(8), 1964; https://doi.org/10.3390/en18081964 - 11 Apr 2025
Viewed by 534
Abstract
In recent years, the effects of global climate change have become more apparent, and reducing energy-derived CO2 emissions has become an important issue. The purpose of this study is to evaluate the CO2 emission reduction effect according to energy conservation scenarios [...] Read more.
In recent years, the effects of global climate change have become more apparent, and reducing energy-derived CO2 emissions has become an important issue. The purpose of this study is to evaluate the CO2 emission reduction effect according to energy conservation scenarios in the residential sector, based on actual data. In this study, we set up energy-saving scenarios assuming the implementation of energy-saving behavior and the replacement of energy-consuming equipment and calculated the CO2 emission reduction effects of energy conservation for cooling, heating, and hot water using individual data from a large-scale survey of 29,161 samples. Consequently, we could quantify the relationship between the set scenarios and the associated CO2 reduction effects. Based on the results, we compared countermeasures and considered their respective potentials. However, despite there being an aggressive scenario in which all households implemented energy conservation measures, the calculated savings were limited. Therefore, we also considered the potential of demand response as a rough estimate. The results indicated that, while continued efforts to curb energy demand are necessary, a comprehensive countermeasure approach is important for achieving carbon neutrality. Full article
(This article belongs to the Section B: Energy and Environment)
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26 pages, 4228 KiB  
Article
Societal Impacts of Renewable Energy Consumption and Transport CO2 Emissions in New Zealand
by Saeed Solaymani and Grace B. Villamor
Sustainability 2025, 17(8), 3409; https://doi.org/10.3390/su17083409 - 11 Apr 2025
Viewed by 483
Abstract
Life expectancy and mortality rates are important indicators of public health and societal well-being, which are heavily influenced by environmental and economic factors. This study estimates the impacts of renewable energy consumption, transportation CO2 emissions, and other variables on life expectancy and [...] Read more.
Life expectancy and mortality rates are important indicators of public health and societal well-being, which are heavily influenced by environmental and economic factors. This study estimates the impacts of renewable energy consumption, transportation CO2 emissions, and other variables on life expectancy and mortality in New Zealand using the dynamic autoregressive distributed lag simulations methodology during 1972–2022. The findings indicate that a 1% increase in renewable energy consumption and household expenditure leads to rises in life expectancy of 0.03% and 0.005%, respectively, in the long run. Urbanisation can also boost life expectancy in the long run by 0.43% if its value rises by 1%. However, if CO2 emissions from the transport sector rise by 1% in the long run, it will contribute to a 0.07% decrease in life expectancy. However, the short-run results show that trade household expenditure, public health expenditure, and renewable energy consumption increase life expectancy, while capital formation and transport CO2 emissions reduce it, but with lower impacts. The mortality results show that trade, public health expenditures, urbanisation, and renewable energy consumption can reduce mortality in the long run by 0.59%, 0.52%, 16%, and 0.66%, respectively, when their values increase by 1%, while transport CO2 emissions increase it by 1.6%. However, capital formation can decrease mortality in the long run. It declines mortality by 0.21% when increased by 1%. These findings suggest the crucial role of renewable energy consumption and public health expenditure in decreasing mortality rates and improving life expectancy in New Zealand. Policymakers must prioritize these variables to achieve meaningful improvements in public health outcomes. Full article
(This article belongs to the Section Energy Sustainability)
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21 pages, 1181 KiB  
Review
Regional-Scale Energy Modelling for Developing Strategies to Achieve Climate Neutrality
by Janusz Zyśk, Artur Wyrwa, Maciej Raczyński, Marcin Pluta and Wojciech Suwała
Energies 2025, 18(7), 1787; https://doi.org/10.3390/en18071787 - 2 Apr 2025
Viewed by 713
Abstract
In this work, complex energy and greenhouse gas emissions analysis on a regional scale was presented. In the framework of analysis, the 3E (Energy–Economy–Environment) class optimisation model was developed. The objective function includes the costs of energy in the medium and long term. [...] Read more.
In this work, complex energy and greenhouse gas emissions analysis on a regional scale was presented. In the framework of analysis, the 3E (Energy–Economy–Environment) class optimisation model was developed. The objective function includes the costs of energy in the medium and long term. The model covers the following sectors: energy, industry, agriculture, households, tertiary, transport, and forestry. Data such as (i) potential of individual technologies, (ii) potential of renewable energy sources, (iii) technology and fuel costs, (iv) the legal environment, and (v) sectoral goals indicated in strategic documents at various levels (regional, national, European) were implemented into the model. The aim of the study was to indicate the optimal paths to achieve climate neutrality for a selected coal region of Europe (Małopolska Voivodeship, Poland). For this purpose, four scenarios were developed, with different goals and activities. The base year for the research is 2020, and the scenarios were developed until 2050. The research we carried out allowed us to obtain results on greenhouse gas emissions, fuel consumption, decommissioning old technologies and installing new ones, and costs system development by 2050. Full article
(This article belongs to the Special Issue Renewable Energy and Nearly-Zero Emissions Energy Systems)
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33 pages, 26551 KiB  
Article
Carbon Footprint Evaluation and Reduction Strategies for a Residential Building in Romania: A Case Study
by Alexandru Mihai Bulmez, George Dragomir, Sorin Ionuț Bolocan, Alin Ionuț Brezeanu, Mariana Fratu, Nicolae Fani Iordan, Norbert Gocz and Răzvan Calotă
Buildings 2025, 15(6), 938; https://doi.org/10.3390/buildings15060938 - 16 Mar 2025
Viewed by 1048
Abstract
Single-family residential buildings represent the highest share of building sector in Romania. Their operation emits the most CO2 into Earth’s atmosphere, as most of them are not energy efficient. A life cycle assessment is performed for a case study building, built in [...] Read more.
Single-family residential buildings represent the highest share of building sector in Romania. Their operation emits the most CO2 into Earth’s atmosphere, as most of them are not energy efficient. A life cycle assessment is performed for a case study building, built in 2019 in Romania, establishing its carbon footprint. For this building CO2 emissions are 177.55 tCO2 for the construction stage, 76.19 tCO2 for the operation stage, 3.55 tCO2 for the demolition stage, and a total of 129.76 tCO2 after reducing with the carbon sequestration from vegetation 127.53 tCO2. The main purpose of this study is to analyse the carbon footprint for a typical single-family Romanian household, with an emphasis on the operational stage. The study compares the results and extrapolates them to all single-family residential buildings in Romania regarding CO2 emissions, with an emphasis on the operational stage. The results illustrate a considerable reduction in CO2 emissions from old, high energy consumption buildings to new, low energy consumption buildings. The highest operational stage emissions for old buildings in Romania are 962.94 tCO2 for firewood heating and 573.69 tCO2 for gas boiler heating, as those buildings are not insulated and don’t use a heat pump. Additionally, considering the use of photovoltaic panels for the entire lifespan, the CO2 emissions for the operational stage decrease for the case study building from 76.18 tCO2 to 19.90 tCO2. Moreover, using a heat pump detriments firewood or gas boilers, decreasing CO2 emissions for the operational stage by up to 34% and 26%, respectively. Due to the higher cost of electrical energy compared to natural gas in Romania, gas boilers are more cost-effective than heat pumps. Because of this, and the higher implementation costs, the tendency is towards natural gas. This will in turn result in an increase of CO2 emission for the entire life cycle of the building by approximate 32% for new buildings and 86% for old, high-energy-consumption buildings. Full article
(This article belongs to the Topic Decarbonising the Building Industry)
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39 pages, 4863 KiB  
Article
Towards Clean Energy Transition: An Exploratory Case Study from Rural Egypt
by Ahmed Abouaiana and Alessandra Battisti
Sustainability 2025, 17(4), 1597; https://doi.org/10.3390/su17041597 - 14 Feb 2025
Cited by 2 | Viewed by 1433
Abstract
Rural areas are ideal for renewable energy facilities, supporting sustainable development and energy transition. Egypt aims to reduce greenhouse gas emissions in the electricity sector by 37% and energy consumption by 17% by 2030. Rural Egypt, hosting two-thirds of the population and building [...] Read more.
Rural areas are ideal for renewable energy facilities, supporting sustainable development and energy transition. Egypt aims to reduce greenhouse gas emissions in the electricity sector by 37% and energy consumption by 17% by 2030. Rural Egypt, hosting two-thirds of the population and building stock, consumes one-third of the total electricity. Thus, this paper provides an exploratory study to diagnose and benchmark the energy-use intensity of rural buildings and quantify the correlation between residential electricity consumption, built environment elements, and socio-economic factors, in addition to promoting techno-economic assessments of renewable energy from photovoltaic panels in rural Egypt, supporting national policies amid rapid rural development. The study utilized different analytical and field methods and statistical analyses. A typical agriculture-based rural village in the Delta region, northern Egypt, was selected; the built environment, building types, and socio-economic factors were examined. The results revealed a significant correlation between lifestyle, built-up area, household size, and floor numbers with residential buildings’ electricity consumption. The average annual electricity use intensity was benchmarked at 2.5–92.3 kWh/m2 for six non-residential building typologies and at 22 kWh/m2 and 6.67 kWh/dwelling for residential buildings. Under current regulations, rooftop solar panels can generate electricity significantly, but are not profitable. Eventually, insights for policymakers to inform energy transition policies and national initiatives for rural regeneration were provided. The research focused on a local context, but the methodology can be applied to rural settlements in similar contexts. Full article
(This article belongs to the Special Issue Renewable Energies in the Built Environment)
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21 pages, 3381 KiB  
Article
Crowdfunding and Energy Efficiency Contracting: Exploring New Pathways for Private Investment in Building Renovations
by Renan Magalhães, Federico Narracci and Jens Lowitzsch
FinTech 2025, 4(1), 6; https://doi.org/10.3390/fintech4010006 - 4 Feb 2025
Cited by 2 | Viewed by 1445
Abstract
Energy Efficiency Contracting (EEC) enables structural improvements in buildings by financing upgrades through the savings generated, eliminating the need for upfront investment by property owners. Although the model supports the energy transition and the reduction in GHG emissions, its adoption in the private [...] Read more.
Energy Efficiency Contracting (EEC) enables structural improvements in buildings by financing upgrades through the savings generated, eliminating the need for upfront investment by property owners. Although the model supports the energy transition and the reduction in GHG emissions, its adoption in the private sector faces relevant barriers such as the lack of information from the Energy Service Companies (ESCOs), distrust from clients in benefits with no upfront costs, and legal and behavioral barriers. To overcome these challenges, the FinSESCo platform, funded by Era-Net 2020 joint call, aims to channel private investments into building renovations and renewable energy installations via a crowdfunding portal. The platform allows individuals and organizations to finance small-scale renewable energy installations and energy efficiency measures for homeowners, tenants, and apartment owners. The new platform is likely to change the way EE investments are made and reach out to new audiences. A survey of 2585 German households sought to understand the drivers of EE investments, factors affecting the decisions, and their relationships with several demographic variables. Using a stepwise backward regression model, the study found significant differences between traditional investors in EE and those who would use the FinSESCo platform. Low- and medium-income households were more likely to take up the platform, and previous renewable energy ownership, experience with EEC models, and knowledge of crowdfunding further raised willingness to participate. The results point to the potential of the FinSESCo platform to expand EEC to new audiences, underlining its role of democratization and diversification of investments in building energy efficiency. Full article
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33 pages, 3721 KiB  
Article
Investment Portfolio Allocation and Insurance Solvency: New Evidence from Insurance Groups in the Era of Solvency II
by Thomas Poufinas and Evangelia Siopi
Risks 2024, 12(12), 191; https://doi.org/10.3390/risks12120191 - 29 Nov 2024
Cited by 1 | Viewed by 3394
Abstract
This study examines the effect of the investment portfolio structure on insurers’ solvency, as measured by the Solvency Capital Requirement ratio. An empirical sample of 88 EU-based insurance groups was analyzed to provide robust evidence of the portfolio’s impact on the Solvency Capital [...] Read more.
This study examines the effect of the investment portfolio structure on insurers’ solvency, as measured by the Solvency Capital Requirement ratio. An empirical sample of 88 EU-based insurance groups was analyzed to provide robust evidence of the portfolio’s impact on the Solvency Capital Requirement ratio from 2016 to 2022. Linear regression and supervised machine learning models, particularly extra trees regression, were used to predict the solvency ratios, with the latter outperforming the former. The investigation was supplemented with panel data analysis. Firm-specific factors, including, unit-linked and index-linked liabilities, firm size, investments in property, collective undertakings, bonds and equities, and the ratio of government bonds to corporate bonds and country-specific factors, such as life and non-life market concentration, domestic bond market development, private debt development, household spending, banking concentration, non-performing loans, and CO2 emissions, were found to have an important effect on insurers’ solvency ratios. The novelty of this research lies in the investigation of the connection of solvency ratios with variables that prior studies have not yet explored, such as portfolio asset allocation, the life and non-life insurance market concentration, and unit-linked and index-linked products, via the employment of a battery of traditional and machine enhanced methods. Furthermore, it identifies the relation of solvency ratios with bond market development and investments in collective undertakings. Finally, it addresses the substantial solvency risks posed by the high banking sector concentration to insurers under Solvency II. Full article
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