The determinants of demand intention for energy management services

Enhance the efficiency of energy usage and lower energy costs have gained attention in the recent years. Prior research has neglected the transaction structure of energy management service. This study investigated the ex ante and ex post transaction costs with respect the contracting between Energy Service Company (ESCOs) and energy demanders. Combined with the internal control mechanisms and the external environments of ESCOs, this study conducted a large-scale survey of 835 energy demanders and a focus group as well. Four key determinants of energy management services were identified including asset specificity, task complexity, market competitiveness and institutional supports. These results showed that asset propriety and task complexity significantly increase the transaction costs and reduce the demand intention for energy management services. However, market competitiveness and institutional supports are negatively related to the transaction costs and increase demand intention for energy management services. This study further verified the importance of formal control mechanisms, which are not only strengthen the industrial development, but also increase the demand intention of energy management services.