Energy Performance Contract models for the diffusion of green-manufacturing technologies in China: A stakeholder analysis from SMEs’ perspective

Small-and-medium-sized enterprises (SMEs) are significant to China's emission reduction programme. This research aims to improve our understanding of the challenge of diffusing green-manufacturing technologies among SMEs in China. Specifically, this study examines the Chinese Government's effort to facilitate reduction of energy consumption among SMEs through Energy Performance Contracts (EPCs) to incentivize domestic manufacturers to adopt energy efficient measures (EEMs) in order to reduce demand for energy and corresponding drop in emissions. The data is gathered from relevant EPC stakeholders in the National Motor Upgrading Demonstration Project and its implementation in Dongguan city, which is based on 30 in-depth interviews and 6 focus group discussions. Using stakeholder analysis, this study finds that guaranteed energy savings model is the favorite model in implementation, given the gained benefits outweigh committed resources, and the control capability overrides possible risks among the two core stakeholders. The outcomes of this study may allow the government to have a clear understanding of stakeholder perception of the different EPC models used in China so the design and deployment of these mechanisms can be improved.

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