Source: UNIVERSITY OF NEBRASKA submitted to NRP
BARRIERS TO ADOPTION OF ENERGY EFFICIENT PRACTICES AND TECHNOLOGY BY SMALL BUSINESSES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0217428
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Dec 1, 2008
Project End Date
Nov 30, 2013
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF NEBRASKA
(N/A)
LINCOLN,NE 68583
Performing Department
Textiles, Merchandising & Fashion Design
Non Technical Summary
This project addresses critical national, regional and state environmental and economic issues. The small business profit margin is influenced by many factors including the cost of natural resources, transportation and shipping, building structure and equipment efficiency, utility and infrastructure costs, and maintenance. Small business resource and energy use contributes to carbon dioxide production, greenhouse gases and environmental problems. Buildings contribute to about 40 percent of the nation's emissions of carbon dioxide as most of the energy used in buildings comes from the burning of fossil fuels (U.S. EPA, 2008). Energy use in all buildings contributes to about 48 percent of all heat-trapping emissions (U.S. Congressional Select Committee, 2008). An estimated 76 percent of all electricity generated by U.S. power facilities goes to operate buildings. RATIONAL: Nationally, about 51 percent of the private gross domestic product comes from small business, and they employ about 53 percent of the private non-farm workforce (Kennard, 2001). Of Nebraska businesses with employees, about 97 percent are small with fewer than 500 employees. In 2005, the 159,300 Nebraska small businesses were composed of about 116,484 non-employee small business and 40,356 businesses with fewer than 500 employees. Businesses with fewer than 500 employees provided 392,000 jobs, and many of these small businesses employ fewer than 100 people (SBA, 2006). The non-farm small businesses' income was at $4.7 billion in 2005 (SBA, 2006). Thus, the performance of small businesses affects Nebraska's economy and the energy used. Although more research on energy has occurred since that time, the literature on very small or micro-businesses and energy use is limited. Not completing the research may mean that the literature continues to be limited relating to small business and energy issues. METHODS: The Research questions are: What are the barriers as perceived by small retail businesses to adopting energy efficient practices and new technology, and what are the most efficient and effective ways to remove the burdens of and barriers to adopting energy efficient practices and new technology This research includes assessing existing energy practices and technology use, and why more efficient practices, equipment and technology have not been adopted. Measures will focus on economic, human behavior, policy and regulatory, knowledge, existing resources, availability of skilled professionals to make the modifications for energy efficiency, the building structure and equipment, attitudes,felt responsibility, and environmental concern. A random sample of 1800 small retail business with 1 to 20 employees will be sent a survey. Four mailings will be used to obtain a larger number of respondents. The primary analytical methods include descriptive statistics, multiple regression and path analysis. BENEFITS: It is expected that the results will be of use to community leaders, policy makers, to energy and small business professionals, and to Nebraskans in making policy and management decisions that relate to energy issues and to small retail businesses.
Animal Health Component
60%
Research Effort Categories
Basic
20%
Applied
60%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
80460991070100%
Goals / Objectives
GOAL: Discover 1) existing energy burdens and barriers to adopting energy efficient practices & new technology and 2) ways to remove the barriers to adopting energy efficient practices & new technology. OUTPUTS: The findings will be summarized for dissemination to Nebraska communities including policy makers, stakeholders and the Nebraska Energy Assistance Network, small businesses organizations, and through the extension system in addition to publications submitted to journals. Journal articles may be submitted to Journal of Small Business Management, Organization & Environment; International Journal of Ecosocial Research, and other journals that are read by small business managers and owners and by policy makers who are focused on the needs of small businesses or the environment. Peer reviewed papers will be submitted to Midwest Sociology Meeting, community development conferences, and other venues. A summary "popular" press extension publication will be made available on-line and to agencies and organizations who serve the small business professionals, small retail businesses, and for news media item for business journals serving NE. EXPECTED IMPACT: It is expected that the results will be of use to community leaders, policy makers, to energy and small business professionals, and to Nebraskans in making policy and management decisions that relate to energy issues and to small retail businesses.
Project Methods
VARIABLES: Barrier measures include: Economic, human behavior, policy and regulatory, knowledge, infrastructure, building structure and equipment, attitudes and opinions, felt responsibility, and environmental concern. A random stratified random sample survey of 1800 small Nebraska businesses in rural and urban areas will be conducted to measure the variables identified based on previous research (Niemeyer, 1982, 1994) and on the literature review. PHASE I: Mail Survey (4 times out) to small businesses as defined by those having 1 to 20 employees. Experian data base is used to obtain the sample based on the North American Industry Classification System codes 44 & 45, retail trade, with some specific codes omitted due to specific operation and space characteristics. The surveys will be pilot tested with a group of small business owners to determine question clarity and the accuracy of measures. Coefficient alphas will be computed for all scales created from the data prior to use in further statistical analysis. Additional data will be obtained from non-respondents to determine if the non-respondents are different in their responses from those who did respond and to discover whether the findings are applicable to other small businesses similar to the population sample. ANALYSIS: The data will be analyzed using multiple regression to determine the amount of variance explained in the dependent variable by the independent variable(s). Path analysis will be used to decompose and interpret the linear relationships among the variables and to discover causal relationships in testing. PHASE II: The objective of Phase II is to discover whether there are similarities and differences across five Midwestern states among small businesses in their existing energy efficiency of the building and equipment and in behavioral practices for energy efficiency. A second objective is to discover any energy barriers or burdens that are consistent across the states. In addition, this phase will include identifying incentives or policies that may encourage adoption of efficient practices, equipment and building modifications.

Progress 12/01/08 to 11/30/13

Outputs
OUTPUTS: 1. Purpose: identify burdens and barriers to adopting energy efficient materials and practices of small retail businesses. A stratified sample of 900 rural and 900 urban NE small retail businesses (1 to 20 employees) were surveyed in 2008-2009; 316 (17.5%)surveys were returned. Respondents rated their own knowledge levels of 31 items and plans to increase the efficiency of their business structure or change practices in the next five years. They were asked about barriers or obstacles and policy and motivators to making their business more efficient. Analysis indicates multiple reasons for having not made energy efficiency changes. The barriers identified to reduce energy efficiency included: money/resources (41%), interest or motivation (19%), time to do (15%), knowledge or skills (11%), already exists (4%), and all other (10%). Respondents ranked costs (64%), unable to make changes themselves (40%), and uncertainty about the cost/payback benefit (32%) as more likely to be reasons for having not made added energy efficiency changes. Fifty-two percent indicate available capital for making energy improvements is a problem, 48.5% indicate energy costs volatility, and 40% report energy utility costs is a problem. One-third indicate current debt load for their business is a problem. Motivators that would result in the respondents taking energy efficiency actions were: money (23%), tax breaks/other incentives (20%), information/education (14%), help needed (12%), ownership (8.4%), time (4%), all other (19%). Respondents (26.8%) indicate there are policies they would like to see developed to encourage efficiency; 11.3% indicate there are policies that create barriers to making their businesses more efficient. Respondents report lower knowledge levels about solar photovoltaics, high-performance buildings, small wind generators, solar hot water, high-pressure sodium and metal-halide lighting, and cooling economizers. An additional barrier is knowledge of existing assistance programs and tools that could address the barriers identified. Respondents report no or very little knowledge about calculating rate of return on energy investment - 84.7%; tools or programs to calculate return rate - 92.2%; Dollar and Saving Loan Program - 93.4%; life cycle costs analysis - 94.5%; USDA Renewable Energy Systems and Efficiency Improvement Program - 93.8% ; and the USDA Business and Industry Guaranteed Loan - 93.8%. 2. Follow-up survey: participants from the 2008-09 study of small retail businesses ( n=310) received packets detailing sources of grants and low-interest loans, information on calculating payback, and an Energy Guide for Small Businesses. We (S.Niemeyer, J. Deichert, J.Waters) conducted a follow-up study including the evaluation of the educational intervention in collaboration with UNO and Small Business Development Center. Of the 310 respondents from the first study, 102 were returned in this second study. Niemeyer presented the data at the NE Governors Conference, the NE Energy Assistance Network and again at the NE Energy Assistance Annual Conference. PROJECT MODIFICATIONS: ENDING. PARTICIPANTS: PARTICIPANTS: Shirley Niemeyer, Ph.D. (PI) is a professor and extension specialist and researcher in Housing and the Environment at the University of Nebraska Lincoln. Niemeyer worked with Deichert in instrument development, and obtained data samples, managed the mailings, data recording and analysis. Niemeyer provided training on the Dillman technique of survey mailings, recording the returned surveys and tracking the four mailings. Jerome A. Deichert (Co-PI) is the Director of the Center for Public Affairs Research at the University of Nebraska Omaha. Deichert worked with Niemeyer in developing the survey instrument, exploring data information centers, and with implications of the results. His research focus is on policy. TARGET AUDIENCES: Targeted audiences for disseminating results of the study included small business owners, policy makers, and organizations and agencies such as the NE Small Business Center, Department of Economic Development, etc. The information was also shared with the major utility providers in the state. Both presentations and publications were used to disseminate the findings. PROJECT MODIFICATIONS: A follow-up survey with added information about tax incentives, grants and low-cost energy loans and an educational publication to increase knowledge was added to the project.

Impacts
1. Overall, the respondents are not aware of existing assistance programs and tools. With costs seen as a barrier to making energy efficiency changes, educational programs and marketing are needed to increase awareness and knowledge of the already available financial assistance programs and analysis tools. Of eight motivator items to improve energy efficiency, the respondents (67%), indicate grants and subsidies as most likely to motivate them to improve energy efficiency, followed by tax breaks (54%), improved access to funding (49%) and payback information (43%). This research contributes to understanding barriers and potential motivators to adoption of more energy efficient practices and technology and potential ways to remove barriers. Removing barriers may result in more rapid adoption of innovation and energy efficient strategies, less energy demand, and may lead to more economically viable small businesses and decreased environmental impacts. Analysis indicates that both the motivators and barriers center on knowledge and economics. Targeted programs are needed to address lack of knowledge as a barrier to making added changes for energy efficiency. Including information about existing programs (tax incentives, loans, and grants) and tools to analyze rate of return is recommended. Prior to this research, the connection between barriers and motivators to making energy efficiency changes in small retail businesses had not been investigated. Limited previous research was found in the literature search. In the follow-up survey, 18% of the respondents indicated that they had made changes to increase energy efficiency resulting from information provided; 46% indicated they learned something from the information. Actions taken by the respondents since the intervention included as examples: "installed new HVAC, added more efficient windows, insulated ceiling, changed lighting to fluorescent, kept unnecessary lights off, and limited heating/cooling." The information provided in the follow-up materials was used in making energy efficient changes in their business operation and structure by some of the respondents. Providing information that addresses the barriers of knowledge or skills and resources may help to advance the energy efficiency of some small retail businesses. The summarized findings were presented by invitation at NE Governors Conference on Rural Development and at NE Energy Assistance Network Annual meeting. The analysis indicates the small retail business respondents are not aware of the existing financial programs to assist with energy improvements as well as tools to analyze potential improvements rate of return. Barriers identified include economic, policy/regulatory, knowledge, and building condition. Lack of knowledge about existing best practices, technologies and available economic assistance may limit the ability of small retail businesses to adopt energy efficient strategies, reduce energy use and more effectively manage utility costs.

Publications

  • Niemeyer, S. (2010) Consumer voices: Adoption of residential energy efficient practices. International Journal of Consumer Studies.Vol. 34(2), Wiley-Blackwell Ltd, IJC 841. Pages: 140-145 ISSN: 14706423 Available: http://www.mendeley.com/research/consumer-voices-adoption-residential -energyefficient-practices/


Progress 10/01/09 to 09/30/10

Outputs
OUTPUTS: Participants from the first 2008-09 study of Nebraska small retail businesses ( n=310) were provided information about sources of grants and low-interest loans along with calculating payback. They also received the extensive Energy Guide for Small Businesses. These items were provided in response to the identified energy actions barriers as a result of findings from the first study of small retail businesses. We conducted a follow-up study including the evaluation of the educational intervention in collaboration with UNO and Small Business Development Center. Of the 310 respondents from the first study, 102 were returned in this second study. The data were analyzed (Deichert, Niemeyer, Waters. We summarized the findings. PARTICIPANTS: Shirley Niemeyer, Ph.D. (PI) is a professor and extension specialist and researcher in Housing and the Environment at the University of Nebraska Lincoln. Niemeyer worked with Jerome Deichert, Center for Public Affairs Research at the University of Nebraska Omaha and Jean Waters from the Nebraska Business Development Center in instrument development. Niemeyer provided the listing of previous respondents. The team worked in developing the plan for data analysis and interpreting of the data. This project provided for additional information being provided to the 310 small retail businesses. Niemeyer presented the data for 26 participants at the NE Governors Conference, and to the NE Energy Assistance Network. TARGET AUDIENCES: The targeted audiences for disseminating the findings include: NE Small Retail Businesses, Chambers of Commerce, Rural Development Officials, USDA Rural Development, Nebraska Energy Office, public utility providers having incentive programs, and financial institutions. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The summarized findings were presented by invitation at NE Governors Conference on Rural Development and at NE Energy Assistance Network meeting (Niemeyer). Two papers are in process to submit for publication. The primary motivators that would result in the respondents (n=102) taking energy efficiency actions were: money (23%), tax breaks/other incentives (20%), information/education (14%), help needed (12%), ownership (8.4%), time (4%), all other (19%). The barriers identified by the participants as reasons why they had not taken actions to reduce energy efficiency included: money/resources (41%), interest or motivation (19%), time to do (15%), knowledge or skills (11%), already exists (4%), and all other (10%). "Other" comments included: "We do not have the money and time to do it while trying to survive in a competitive environment." Eighteen percent of the respondents indicated that they had made changes to increase energy efficiency resulting from information provided; 46% indicated they learned something from the information. Actions taken by the respondents since the intervention included as examples: "installed new HVAC, added double pain glass, insulated ceiling, changed lighting to fluorescent, keep unnecessary lights off, and limit heating/cooling." Thus, the findings indicate that the information provided was used in making energy efficient changes in their business operation and structure by some of the respondents. Providing information that addresses the barriers of knowledge or skills and resources may help to advance the energy efficiency of some small retail businesses.

Publications

  • No publications reported this period


Progress 10/01/08 to 09/30/09

Outputs
(N/A)

Impacts
Respondents ranked costs (64%), unable to make changes themselves (40%), and uncertainty about the cost/payback benefit (32%) as more likely to be reasons for having not made added energy efficiency changes in their businesses. Fifty-two percent indicate available capital for making energy improvements is a problem, 48.5% indicate energy costs volatility, and 40% report energy utility costs is a problem. About a third indicate current debt load for their business is a problem. Respondents (13%) report their building is in poor condition, which may reduce the incentive to making additional investments in its energy efficiency. Respondents (26.8 %) indicate there are policies they would like to see developed to encourage efficiency and 11.3% indicate there are policies that create barriers to making their businesses more efficient. Respondents report lower knowledge levels about solar photovoltaics, high-performance buildings, small wind generators, solar hot water, high-pressure sodium and metal-halide lighting, and cooling economizers. An additional barrier is knowledge of existing assistance programs and tools that could address the barriers identified. Respondents report they have no or very little knowledge about calculating rate of return on an energy investment - 84.7%; tools or programs to calculate return rate - 92.2%; Dollar and Saving Loan Program - 93.4%; life cycle costs analysis - 94.5%; USDA Renewable Energy Systems and Efficiency Improvement Program - 93.8% ; and the USDA Business and Industry Guaranteed Loan - 93.8%. Overall, these respondents are not aware of existing assistance programs and tools. With costs seen as a barrier to making energy efficiency changes, educational programs and marketing are needed to increase awareness and knowledge of the already available financial assistance programs and analysis tools. Of eight motivator items to improve energy efficiency, the respondents (67%), indicate grants and subsidies as most likely to motivate them to improve energy efficiency, followed by tax breaks (54%), improved access to funding (49%) and payback information (43%). Factors are in place or could be put in place to motivate making improvements in the energy efficiency of small businesses. Analysis indicates that both the motivators and barriers center on knowledge and economics. The analysis indicates the small retail business respondents are not aware of the existing financial programs, as identified in the survey, to assist with energy improvements, as well as tools to analyze potential improvements rate of return. Barriers identified include economic, policy/regulatory, knowledge, and building condition. Lack of knowledge about existing best practices, technologies and available economic assistance may limit the ability of small retail businesses to adopt energy efficient strategies, reduce energy use and more effectively manage utility costs.

Publications

  • CURRENT RESEARCH: Niemeyer, S. (2009, expected Dec. In final edit). Consumer voices: Adoption of residential energy efficient practices. International Journal of Consumer Studies. Wiley-Blackwell IJC 841. Research was sponsored in part by the UNL Nebraska Center for Energy Sciences Research, Education and Outreach and NPPD.
  • PREVIOUS RESEARCH: Cook,C., Crull,S.R., Bruin,M.J.,Yust,B.L., Shelley, M.C., Laux, S., Memken, J, Niemeyer, S.M., and White, B.J. (2009 March). Evidence of a housing decision chain in rural community vitality. Rural Sociology. Volume 74, Issue 1, Pages: 113-137 DIGITAL ID 10.1526 003601109787524124 Research was sponsored by the USDA/CSREES through the National Research Initiative Competitive Grants Program 99 35401 7768.