Selecting Financing Strategies to Overcome Corporate Barriers

Abstract

If energy conservation is such a good idea, why are we still having conferences to discuss ways to conserve? Why isn't every industrial building in America retrofit and the issue resolved? The list of answers to that question is probably as long, or longer than the list of presentations at this year's Industrial Energy Conservation Conference. This paper will focus on two of the many potential answers. First, the corporate decision making process in industrial firms presents many obstacles to a final, positive decision to undertake an energy efficiency investment. Second, many industrial companies either lack the capital to make energy investments or are unaware of financing options which can be used to obtain capital for those projects. This paper will discuss ways in which companies can and have overcome obstacles by identifying corporate goals and then selecting financing strategies to meet those goals. It begins by listing typical obstacles encountered by companies throughout America and then sets forth a list of issues which must be considered when selecting financing strategies.