Economic Evaluation of Energy-Related Investment Decisions
The outcome of corporate energy-related investment decisions is affected by a multitude of different influence factors which make such decisions complex and introduce different sources of uncertainty. We review studies from different streams in literature that help understand determinants of energy-related investment decisions by companies. The focus is on companies that are primarily users (and not producers) of energy. Findings in these different literatures are disaggregated and arranged according to a framework that structures different aspects of energy-related investment decisions. An overview of different types of energy-related investment decisions is provided. We address the embedding of investment processes within companies, the role of energy prices, external stakeholders, and technical considerations in the context of energy-related investment decisions. Furthermore, financial investment criteria are addressed. We conclude with suggestions for future research.