# A Heuristic Approach to the Decision-Making Process of Energy Prosumers in a Circular Economy
## 2 Background  
At present, a reduction in the consumption of nonrenewable resources is especially urgent in the framework of the energy-transition objectives set by the European Union (EU) and for the achievement of the principles of a circular economy (CE) in the territory of the EU [13]. In the context of a CE, if imported energy resources are reduced due to self-consumption, or if the gap between importing and exporting costs is increased, the system would be financially feasible for the average household and it would provide significant benefits in terms of grid balancing [14]. Thus, the circular loops could be closer to investments in small-scale renewables within the framework of a CE [15]. Stakeholder engagement in the energy transition has been a theme throughout the literature in the last decade [16]. However, the role of prosumers from a CE perspective is a relatively novel line of inquiry, and the decision-making process with respect to investment in self-consumption is still under study. In fact, the responsibility for effecting change has been increasingly passed down from large-scale renewables, such as government agencies or industries, toward the individual user in concert with the progress of energy transition [17]. Thus, to understand how prosumers behave is a relevant area of research to establish the complex process of influencing the deployment of sustainable energy. In self-consumption facilities, the consumer is also a producer that faces many additional questions during the decision-making process before installation. On the one hand, these investors are strongly influenced by socioeconomic factors. Some of them are external factors such as the equipment and installation costs, the electricity tariff, local taxes, and incentives, while others are inner or individual factors such as the demand profile, income, and home value. These contextual factors underpin \"rational\" or \"objective\" decisions when dealing with investment in the installation. The socioeconomic context, defined by variables such as income level and demographic characteristics, was shown to be determinant in the effectiveness of policies in the adoption of renewable technologies at the user level. For instance, [PERSON] et al. (2011) found that potential customers of photovoltaic installations in big cities are less sensitive to economic incentives such as feed-in tariffs or investment tax credits than customers in small cities [18]. If economic criteria win in the final decision, contextual external factors constitute the economic incentives for investment [14]. A transition scenario of zero emissions and renewable energy is not cost-free, and it raises the need for incentive mechanisms, reflected in energy tariffs and payback schemes [19]. The results indicate that, in spite of the numerous financial incentives, the largest barriers are still the high capital costs, the low cost-effectiveness, and the risk of losing money when moving home [20]. The effects of different parameters related to financial resources and the allocation of public subsidies were demonstrated for eco-innovative investments [21]. In addition, from a CE perspective, similar conclusions were achieved by [PERSON] et al. (2019) when analyzing the relationship between the financial resources of firms and their circular scope [15]. Thus, it is relevant to analyze the role of economic parameters in the final decision from a theoretical perspective. In this context, behavioral change theories attempt to make sense of and model this complex issue, but each differs in its focus, although, as explained by [PERSON], [PERSON], and [PERSON] (2010), the key distinction in the examination of these models for low-carbon energy consumers is that which is made between variables that are \"located in the physical, social, and discursive environments in which a person lives\" and variables that \"influence or shape what goes on inside a person's mind\" [22].