%0 Journal Article
	%A Zohreh Soltani and  Seyedmohammadhossein Hosseinian
	%D 2015
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 106, 2015
	%T Investigating the Effect of Refinancing on Financial Behavior of Energy Efficiency Projects
	%U https://publications.waset.org/pdf/10002971
	%V 106
	%X Reduction of energy consumption in built
infrastructure, through the installation of energy-efficient
technologies, is a major approach to achieving sustainability. In
practice, the viability of energy efficiency projects strongly depends
on the cost reimbursement and profitability. These projects are
subject to failure if the actual cost savings do not reimburse the
project cost promptly. In such cases, refinancing could be a solution
to benefit from the long-term returns of the project, if implemented
wisely. However, very little is still known about the effect of
refinancing options on financial performance of energy efficiency
projects. In order to fill this gap, the present study investigates the
financial behavior of energy efficiency projects with focus on
refinancing options, such as Leveraged Loans. A System Dynamics
(SD) model is introduced, and the model application is presented
using an actual case-study data. The case study results indicate that
while high-interest start-ups make using Leveraged Loan inevitable,
refinancing can rescue the project and bring about profitability. This
paper also presents some managerial implications of refinancing
energy efficiency projects based on the case-study analysis. Results
of this study help to implement financially viable energy efficiency
projects so that the community could benefit from their
environmental advantages widely.
	%P 3582 - 3595