2020 (17), №1

The Behavioral Strategies Management in the Energy Service Contracting in the Public and Household Sectors



For citation: 

Buriy, O. V. (2020). The Behavioral Strategies Management in the Energy Service Contracting in the Public and Household Sectors. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 17 (1), 176-186


The energy service contract is an important tool for promoting energy conservation policy in the public sector. It allows to balance the interests of the government and business by reducing energy consumption. However, the problem of satisfying the consumer interests has not been solved. It is important to offer compensation for the delayed energy saving effects. The aim of the study is to identify opportunities to meet short-term interests in the energy service contracting. The situations of benefit- sharing inequality are considered for budget organizations and the housing sector. The particular emphasis has been placed on reducing problem of the principal agent through changes behavioral strategy. The theoretical-methodological basis for the research contains elements of behavioral economics, game theory, contract theory, transaction cost theory.
Based on the analysis practical situations I have found the lack of short-term material incentive for consumers to make deals, which interferes to gain the national aims for increasing energy efficiency. The scientific novelty of the work is to improve organizational and economic mechanism of energy saving. This is achieved by solving the principal-agent problem in the interaction of the proprietors and management of budget-funded institutions. It is stated for the first time, that the practice of energy service contracting does not methodologically correspond to classical approaches of its’ classification. The article notes that the investment financing requirements for the contract performer reconcile with the guarantee in energy conservation. It is defined, that the reconciliation of major repairs and energy saving projects can contribute to develop energy service contracts in the housing sector by monthly fee funding. This approach has significant advantages for households compared to loan financing. The results of the research develop theoretical foundations of the assessment of contracting opportunities when transferring energy saving to outsourcing, changing energy service companies’ source of income, renovations of apartment buildings.

Oleg Valerievich Buriy — PhD in Economics, Associate professor, Head of the Complex Fuel and Energy Problems laboratory, Institute for Socio-Economic & Energy Problem of Komi Science Centre of the Ural Branch of the Russian Academy of Sciences (Syktyvkar, Russian Federation; e-mail: buryj@energy.komisc.ru).