Abstract
The urgent need to accelerate global decarbonization to mitigate against climate change has revitalized the role of industrial policy in a country's economic transformation. This paper focuses on the impact of green industrial policies on China's renewable energy investment overseas. Findings indicate a strong relationship with consistent significant effect across renewable energy sectors, heterogeneous host countries, and firm ownership. Green industrial policies compensate for impoverished investment environments by signaling host governments' commitment to energy transition and decarbonization. This attenuates risk and uncertainty and has a positive effect on renewable energy investment from China. Such investment is especially relevant for developing countries interested in participating in energy transition. China's investment potentially increases access to renewable energy that facilitates global decarbonization.
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