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Large Organizations' Investments in Energy-Efficient Building Retrofits
Susan L. Kulakowski
Energy Analysis Department
Case studies of two large organizations explore how and why such organizations choose to invest (or not) in energy-efficient building retrofits. The cases provide evidence for inconsistent application of budgeting procedures, predominance of payback period as a decision-making tool, existence of split incentives and moderate transaction costs facing certain energy-efficiency project proposals. Evidence also suggests the unrecognized importance of effective communication to management of the results of energy-efficiency programs and particular incentive problems faced by firms with on-site power generation.
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