The drivers of energy efficiency investments: the role of job flexibility
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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.
KeywordsEnergy efficiency investment Temporary employment Panel data
JEL classificationC33 D22 J41 Q40
We are grateful to the research department team of Bank of Italy for their support in the various remote elaborations. All errors are our own. The authors thank three anonymous referees for their critical comments and suggestions. Both authors contributed equally to each section of the article.
Compliance with ethical standards
Conflict of interest
The authors declare that they have no conflict of interest.
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