Abstract: The analysis of transformation of institutional changes outlines two important characteristics. These are: the speed of the changes and their sequence. Successful transformation must be carried out in three different stages; On the first stage, macroeconomic stabilization must be achieved with the help of fiscal and monetary tools. Two-tier banking system should be established and the active functions of central bank should be replaced by the passive ones (reserve requirements and refinancing rate), together with the involvement growth of private sector. Fiscal policy by itself here means the creation of tax system which must replace previously existing direct state revenues; the share of subsidies in the state expenses must be reduced also. The second stage begins after reaching the macroeconomic stabilization at a time of change of formal institutes which must stimulate the private business. Corporate legislation creates a competitive environment at the market and the privatization of state companies takes place. Bankruptcy and contract law is created. he third stage is the most extended one, which means the formation of all state structures that is necessary for the further proper functioning of a market economy. These three stages about the cycle period of political and social transformation and the hierarchy of changes can also be grouped by the different methodology: on the first and the most short-term stage the transfer of power takes place. On the second stage institutions corresponding to new goal are created. The last phase of transformation is extended in time and it includes the infrastructural, socio-cultural and socio-structural changes. The main goal of this research is to explore and identify the features of such kind of models.
Abstract: 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.