Experimental Design
After firms have completed the baseline survey, we will randomly assign (strata by firm size, sector, and location) them to either the control group or one of the three energy-efficient treatment groups. Out of a total sample of 2,400 firms, 1,200 will be assigned to the control group and the remaining 1,200 will receive energy-efficiency treatments, with 400 firms receiving information, 400 firms receiving training, and 400 firms receiving consulting. Treated firms will be contacted and requested to pay (0 for information, €50 for training, and €150 for consultancy) as a commitment device to discourage drop-outs and ensure continued participation in the experiment.
Once the energy-efficiency treatments have been completed, we will randomly allocate the credit treatment to 1,200 firms (200 from each energy-efficient treatment group for a total of 600 firms) and 600 firms from the energy-efficiency control group; there will be 1,200 firms without credit allocated.
Power calculations indicate that with a sample size of 2,400 firms, the minimum detectable effect (MDE) for the energy efficient treatment lies between 8.8 and 13.9 percent, and for the credit treatment between 10.2 and 16 percent.
To be more conservative, we conducted a power calculation for a smaller sample size of 1,800 firms. Of these, 900 firms will be assigned to the control group, and 900 firms will receive energy-efficient treatments (300 in each treatment group). For the credit treatment, 600 firms will be assigned to the control group and 600 will receive the treatment. The power calculation for this scenario shows that the MDE for the energy efficient treatment remains the same, while for the credit treatment, the MDE ranges from 12.5 to 19.6 percent.
The control group will not receive any treatment. Participants assigned to this group will be duly informed of their enrollment in the study. They will be requested to complete baseline and the post-intervention (follow-up) surveys.
As mentioned above, each enrolled firm will be randomly assigned into one of four groups, the control group, or one of three energy-efficient treatment groups: information provision, class training, or consulting:
Information treatment: The information treatment is the most `light touch'. It consists of a video and flyer in which companies receive general information about the green transition and how SMEs can optimize their energy consumption. The information will be based on the firm's sector. We will use the Qualtrics platform to deliver the information, enabling us to track if the firms view the information and for how long. There will be a survey to check knowledge acquisition at the end of the information treatment including questions about intent to change.
Class training: The class training is more intensive and consists of face-to-face or online sessions (and a follow-up online session using engineering students) in which SME managers are taught about energy-efficient measures. The managers will also have the opportunity to ask questions and exchange information. The training will be customized based on the firm's sector. There will be a survey to check knowledge acquisition at the end of the training treatment including questions about intent to change.
Consulting treatment: The consulting treatment consists of individual firms receiving detailed and customized green consulting analysis and advice from a specialized firm. There should be a survey to check knowledge acquisition and level of satisfaction at the end of the consulting treatment including questions about intent to change.
After the energy-efficient treatment, a fraction of firms in each treatment group will be randomly selected into the credit treatment group. This credit treatment allows firms to access a special line of credit for sustainability investments from Banco BPI. Firms are not obliged to obtain this credit from BPI and may seek better offers from other banks if available. Firms can apply for this line of credit up to after the end of the energy efficiency treatment; we will send reminders. There will be a survey after the credit treatment including questions about intent to change.