Incentive Mechanism and Subsidy Design for Continuous Monitoring of Energy Consumption in Public Buildings (CMECPB): An Overview Based on Evolutionary Game Theory

Rapid urbanization and the continued expansion of buildings have resulted in a consistent rise in the energy consumption of buildings. At the same time, the monitoring of building energy consumption has to achieve the goals of an “Emission peak” and “Carbon neutrality”. Numerous energy consumption monitoring systems have been established in several types of public buildings. However, there is a need to ensure that the data are continuously acquired and of superior quality. Scholars have noted that the in-depth research connected to the continuous monitoring of energy consumption in public buildings (CMECPB) is currently sparse. As a result, additional precise quantitative studies targeting the behavior of various stakeholders are also lacking. Hence, there is a need to explore the definition of value and the dynamic benefits of relevant subjects in continuous energy consumption monitoring based on evolutionary game theory and to propose incentive policies. This paper constructs an evolutionary game model for CMECPB between an energy service company (ESCO) and its owner to study the dynamic evolution path of a game system and the evolutionarily stable strategy under market-based mechanisms. Furthermore, by introducing government actions, the incentive policies and subsidy strategy for different subjects of interest are probed in detail by developing a principal-agent model to explore the incentive strength. The following conclusions can be reached: (1) it is inefficient and risky to rely only on the owner and the ESCO in achieving the optimal Pareto equilibrium; (2) the optimal incentives are “fixed incentives” in the case of information symmetry and a “fixed incentive + variable incentive” in the case of information asymmetry; (3) the choice of optimal incentive strategy is also influenced by the cost effort coefficient, risk aversion, external uncertainty, and integrated value transformation coefficient; (4) the incentive intensity and subsidy should be determined by comprehensive analysis with multiple indicators based on the conventional value of a project and the external value of a particular project. An in-depth understanding of each component of the CMECPB pathway yields insights into overcoming the challenges of building energy saving. Furthermore, the results may be useful in developing targeted, effective incentive policies for different disciplines and promoting the continued progress of monitoring building energy consumption and building energy efficiency.

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