Study on the Cause of Venture Capital Investment in China's Clean Energy

Abstract

Clean energy is a new energy that has been continuously developed and expanded along with the energy revolution and changes in the energy market. For a long time, investment in the clean energy sector has relied heavily on government fiscal funds and bank credits, and it is urgent to change its main form of financing through the capital market. As a high-growth, high-tech and high-risk equity capital, venture capital is an important capital force to promote clean energy financing transformation. Therefore, this article is based on the data of 25 provinces’ venture capital investment in clean energy investment, and discusses the important reasons for promoting venture capital investment in this field. The study shows that factors such as the scale of economic development, carbon intensity, energy intensity, technology market, and the scale of private enterprises in each province have a significant impact on the venture capital investment in the clean energy sector. This article did not find that the government's public policy has a “crowding-out effect” on private capital. Second, the activeness of technology trading and the size of the financial market are also important thrusts for investment in the venture capital clean energy field. In terms of macro factors, the impact of oil prices and coal prices on investment in clean energy is also very obvious.