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http://ssrn.com/abstract=1945276
 
 

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Top Management Involvement in the Adoption of Energy Efficiency Projects


Vered Blass


Tel Aviv University

Charles J. Corbett


University of California, Los Angeles - Anderson School of Business

Magali A. Delmas


University of California, Los Angeles (UCLA)

Suresh Muthulingam


Cornell University - Samuel Curtis Johnson Graduate School of Management

October 12, 2011

Johnson School Research Paper Series No. 43-2011

Abstract:     
This paper investigates the role of top management in the adoption of energy-efficiency initiatives. We study data from 175 energy efficiency assessments done by San Diego State University (SDSU) during 2000-2008 as part of the Department of Energy’s Industrial Assessment Center Program. We find that top management involvement leads to firms adopting 30% more of the savings identified in an assessment. We also find that when top management is involved, the average payback of adopted proposals is 57.7% longer. When top managers do reject a recommendation, they are more likely to cite operational barriers, as opposed to economic or organizational ones, than other employees are. Altogether, this suggests that top managers perceive less resource constraints than other managers do and adopt a longer perspective on energy efficiency investments. Overall, our findings shed new light on how top management involvement influences the adoption of process innovations.

Number of Pages in PDF File: 33

Keywords: Environmental Operations, Empirical Research, Energy Efficiency, Adoption, Top Management

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Date posted: October 17, 2011 ; Last revised: October 18, 2011

Suggested Citation

Blass, Vered and Corbett, Charles J. and Delmas, Magali A. and Muthulingam, Suresh, Top Management Involvement in the Adoption of Energy Efficiency Projects (October 12, 2011). Johnson School Research Paper Series No. 43-2011. Available at SSRN: http://ssrn.com/abstract=1945276 or http://dx.doi.org/10.2139/ssrn.1945276

Contact Information

Vered Blass
Tel Aviv University ( email )
Ramat Aviv
Tel-Aviv, 6997801
Israel
Charles J. Corbett
University of California, Los Angeles - Anderson School of Business ( email )
110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
Magali A. Delmas
University of California, Los Angeles (UCLA) ( email )
405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States
Suresh Muthulingam (Contact Author)
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Ithaca, NY 14853
United States

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