Understanding the investment of renewable energy firms in the face of economic policy uncertainty – Micro-evidence from listed companies in China

Abstract

With the development of renewable energy, the current support for China's renewable energy industry has gradually shifted from “helping its development and expansion” to “helping it resists systemic risks and strengthens market competition”. Therefore, there is an urgent need to study how the strategic investment of renewable energy companies is affected by economic policy uncertainty. This paper first robustly explores the non-linear relationship between strategic investment and economic policy uncertainty of Chinese renewable energy enterprises. Then from the three perspectives of the relationship between the government and renewable energy enterprises, the characteristics of renewable energy enterprises, the response of the product market and financial market to renewable energy, this paper innovatively explores how different dimensions will adjust the non-linear relationship between strategic investment of renewable energy enterprises and economic policy uncertainty. The analysis in this paper closely relies on the characteristics of the renewable energy industry at this stage, so our conclusion can provide a reference for the government to formulate the development plan of renewable energy enterprises scientifically and prudently.