The EIA has been initiated by the government to overcome the disincentive to invest
in energy efficient technologies and renewable energy. From a company’s
point of view investment in these technologies is not cost-effective or no top priority
with limited investment funds. Therefore no incentive exists to invest. With a
regulation like EIA the taxable income of companies and with that the amount of
tax that must be paid to the Treasury is lowered. The barrier to invest in energy efficiency
is lowered (and sometimes removed) by means of the EIA.