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Abstract

Are investments in energy efficiency profitable? The answer largely depends on the applied methodology within investment analysis, but because of their wide impact energy efficiency investments should not be evaluated only by "normal" investment criteria. After a comprehensive literature review, we establish a new conceptual framework for the analysis of energy efficiency methodology and exhibit three main factors of evaluation: scope, timing, and approach. Stakeholders of energy efficiency projects can employ this framework when choosing the appropriate methodology for their investment analysis.

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