Report on the Investigation of Potential Output and the Export Promotion of the Taiwan ESCO Industry 

Abstract:

This project is an extension of the 2013 project, named “An Analysis of Impacts on Energy Services Company (ESCO) Industry Using Economic Model and Its Internationalization”. The 2013 project explored the operating environment and the potential output of the Taiwan ESCO industry. For further investigation, the 2014 project focused on frequently encounter difficulties in financing and exports of ESCO and developed a framework for conducting industrial policy that maximizes ESCO potential to contribute to economic growth. We first conducted a questionnaire survey and a series of depth interviews to collect more relevant information about the operating environment of Taiwan ESCO. The survey contained issues about business models, firm characteristics, developing strategies and human resources, etc. 

Second, the Data Envelopment Analysis and the DGEMT model were implemented to estimate the potential output of ESCO and the substitute and complementary relationships between different forms of energy. Third, a survey of the literature on successful strategies and practices for export promotion and financing facility by developing countries was conducted. Finally, by applying above theoretical and empirical methods of analysis, this project provide some relevant information for conducting industrial policies and strategic planning that maximize ESCO potential to contribute to economic growth.