The Dynamics of Energy Efficiency Financing: A Network, Clustering, and Composite Index Approach to Global Mechanism Effectiveness

This study investigates the persistence and effectiveness of energy efficiency (EE) financing mechanisms across various regions from 2010 to 2023. As climate goals become increasingly critical, understanding financing mechanisms for EE is essential. However, inconsistent policy frameworks and fragmented financing structures create challenges. This research aims to assess the persistence, effectiveness, and clustering of EE financing across countries using network analysis, clustering, and composite indexing. Key findings reveal persistent financing patterns and three distinct clusters of countries based on their financing effectiveness. Regions like North America and Europe demonstrate stability but varying performance, while Latin America and the Middle East face declines. The study provides recommendations for strengthening EE financing frameworks and suggests further areas for policy innovation and cross-country learning