This paper examines the determinants of Micro, Small and Medium Enterprises’ adoption of energy efficiency practices and technologies, using cross-sectional data of 8174 randomly selected enterprises from ten major urban areas of Ethiopia. For identification, the study relys on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies.

This study conducted a cross-sectional survey of 8174 micro, small and medium enterprises from ten major urban areas in Ethiopia to study the determinants of the enterprises’ adoption of energy efficiency practices and technologies. For identification, we rely on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies.