Mechanisms of socially responsible investment in housing sector decarbonization projects: social, labor, and management aspects
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DOIhttp://dx.doi.org/10.21511/slrtp.15(2).2025.04
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Article InfoVolume 15 2025, Issue #2, pp. 41-55
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Type of the article: Research Article
The article examines the social, labor, and management dimensions of housing decarbonization processes in the context of socially responsible investment. The relevance of the study is determined by the need to improve the effectiveness of municipal energy efficiency projects in the context of post-war reconstruction, which enhances the role of non-financial factors, in particular human capital and management quality. The purpose of the article is to justify the mechanism of socially responsible investment (Social-ESCO) and to assess the impact of managerial and educational determinants on the effectiveness of housing sector decarbonization projects in 2026.
The methodological basis of the study is input-oriented CCR DEA modeling, which allows integrating traditional quantitative performance indicators and the effectiveness of human resource management practices as active input parameters. The empirical basis of the study is a sample of 25 municipal projects for the energy modernization of the housing stock in the cities of Zhytomyr and Lviv. The modeling results showed a nonlinear relationship between the level of reinvestment of energy savings in human capital development and the economic efficiency of projects. It was established that the optimal level of reinvestment is about 15%, which ensures the stabilization of the internal rate of return (IRR) in the range of 12-14% with a simultaneous increase in social effectiveness. The results confirm the feasibility of using the Social-ESCO mechanism as an institutional form of combining the financial, social, and labor interests of key stakeholders.
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JEL Classification (Paper profile tab)J28, M54, Q48, G31
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References37
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Tables3
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Figures1
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- Figure 1. Conceptual diagram of assessing the effectiveness of decarbonization projects using the DEA method within the Social-ESCO model
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- Table 1. System of input and output parameters for assessing decarbonization projects, taking into account social and labor determinants
- Table 2. Sensitivity analysis of the Social-ESCO model’s effectiveness depending on the level of reinvestment
- Table 3. Results of the DEA assessment of typical management models for decarbonization projects (CCR model)
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