Incentive Contract Design Of Existing Building Energy Efficiency Service Outsourcing Based On The Study Of Effect Factors

In recent years, the rapid increase of building energy consumption becomes a key problem in China, so it is essential to prmote the development of existing building energy efficiency service outsourcing market. In this paper, the problems of contract c in the market were discussed from the theoretical and practical point of view. The aim of this paper is to offer suggestions of incentive contract designing, and the aim was achieved by building a screening game and studying the effect of some factors during Energy Performance Contracting.Based on the theory of transaction cost, this paper summed up19effect factors from5aspects through reviewing the literatures as well as the processing of Energy Performance Contracting. Workers from owners, Energy Services Companies (ESCO) and the third parties were inquired, and the results were discussed by statistical methods such as factor analysis and ANOVAs. At last,8facotors were extracted and substituted into the contracting model according to the statistical results.In the contract design model of this paper, the game of interest between the ESCO and the owners was analysised to determine model parameters, which maximized the owners’expected benefit. The results indicated:a. the owner ought to adopt a contract with ability of screening; b. The owner should choose high-efficient ESCO and provide information rents; c. The project with low difficulty of supervision should be chosed and invested supervision cost properly. Additionally, the Shared Savings Model is a special case of the Guaranteed Savings Model from the contracting model’s perspective.Finally, with the conclusion of theory and empirical research, this paper gave recommendations and summary for owners, evaluated the shortage, and pointed out the future work of this research.