The drivers of energy efficiency investments: the role of job flexibility

The goal of this paper is to identify the characteristics of firms that drive the adoption of energy efficiency investments. Particular attention is given to the distortive effect of the adoption of fixed-term job contracts on firms’ orientation toward the investment in energy savings. From a panel data analysis, three regularities emerge. First, extensive use of job flexibility determines a lower incentive for firms to make an energy efficiency investment. Second, firm performance significantly ameliorates the expenditure in energy savings. Third, substantial differences in energy efficiency investment are present within sectors, international regions, regional areas, and firms of differing size.