Clean Energy Investments Research Articles

The Clean Energy-Ecology Interrelatedness: Evidence from the S&P Dow Jones Indices

In the context where “sustainable energy” promotes “environmental sustainability,” and as private investment in clean energy gains traction as a vital measure for climate change mitigation, evaluating its impact on ecology-focused firms is essential. This study examines the “clean energy-ecology nexus,” investigating whether the rapid growth of clean energy technologies driving sustainable energy transitions positively influences ecology through effective water and waste management practices and optimized industrial systems. Understanding this interrelationship within the frequency domain allows for informed conclusions. We apply a recently developed frequency-domain Granger-causality inferential framework to analyze the clean energy-ecology nexus in both unconditional and conditional contexts. The results suggest that clean energy technologies benefit ecology, reinforcing the connection between clean energy and ecological health.

Public Energy R&D Spending and Green Energy for Sustainable Development: COP28 Perspective of G7 Economies

Achieving sustainable development goals (SDGs) is one of the top priorities for countries worldwide, and the recent COP28 has focused mainly on achieving sustainable development via clean energy investment financing. However, countries and regions still struggle to find various policy-level indicators to achieve sustainability engagement. In this context, finding the right combination of policy indicators becomes crucial. Therefore, the current study seeks to identify the key drivers of sustainability for the G7 economies by utilizing data from 1990–2019. This study employed the cross-sectional autoregressive distributed lag (CS-ARDL) panel time series method of estimating primary results and a novel sustainable development index as the dependent variable. The study revealed that public energy R&D budgets, increasing income levels, improving the political risk index, and promoting clean energy are important for achieving sustainable development in the G7 countries and that the depletion of natural resources has an adverse influence on sustainability. These empirical results are supported by various economic and environmental theories, i.e., the environmental Kuznets curve, the innovation theory of sustainability, the Dutch disease hypothesis, and the political economy of development and energy transition theory. Based on these findings, energy investment is recommended, especially for clean energy projects, and increasing income levels via sustainable economic activities to achieve sustainability in the G7 economies.

Fickle environmental attitudes and cleantech underinvestment

ABSTRACT We show in two steps why clean-energy investment is too low without sufficient government incentives: Energy companies’ cleantech investments rise and fall with oil prices, which drive their revenues. Thus, these companies resist political and stakeholder pressure to invest in clean energy when oil prices are low. In the meantime, US public opinion surveys show that environmental sentiments fall when oil prices are high, thus limiting political and stakeholder pressure for cleantech investment when energy companies’ revenues are plentiful.

Does climate risk as barometers for specific clean energy indices? Insights from quartiles and time-frequency perspective

This study presents the first analysis of the nexus between the Southern Oscillation Index (SOI), a measure of climate risk, and segmented clean energy indices (such as solar, renewable, and bioenergy). Our research findings indicate that (i) the Granger quantile causality significance of SOI on segmented clean energy indices is asymmetric across different conditional quantiles. Significant predictability of SOI is observed only at the 0.25 and 0.75 quantile levels for all segmented clean energy indices, except for the WilderHill Clean Energy Index and NASDAQ OMX Fuel Cell Index. (ii) The clean energy market is significantly influenced by SOI under bullish market conditions. Impacts of SOI on all clean energy markets are nearly negligible when clean energy indices are at the median and lower quantile levels. (iii) The influence of strong La Niña episodes on segmented clean energy indices is more pronounced than during periods of intense El Niño phenomena. (iv) SOI exhibited a positive correlation at mid-term and long-term frequencies with segmented Clean Energy sectors, excluding bioenergy, for the majority of the sample period. Our conclusions provide deeper insights for investors managing clean energy investments in extreme climate conditions. Additionally, they offer useful information for policymakers to formulate viable economic policies addressing climate change, ensuring energy security, and facilitating a safer transition to clean energy.

Corporate Tax Planning: Making Sense of Canada's Clean Energy Investment Tax Credits

Corporate Tax Planning: Making Sense of Canada's Clean Energy Investment Tax Credits

Revealing the essential and sufficient conditions for the energy consumption diversification

To investigate the diversification of energy consumption in 65 countries during 2019, this study utilizes the Shannon-Wiener index (SWI), Necessary Condition Analysis (NCA), and Fuzzy Set Qualitative Comparative Analysis (FsQCA). According to the NCA model, all variables, except FSI, have the necessary conditions for the energy consumption diversification (ECD). The fsQCA model for high ECD identifies four adequate configurations that involve a combination of high human development, high green growth, global innovation, and either lower levels of urbanization or the presence of fragile states. One notable solution, with a consistency score of 93 %, is that a higher level of global innovation combined with lower levels of urbanization leads to higher ECD. Conversely, the model identifies three configurations sufficient for low ECD, which typically include higher levels of urbanization, fragile states, and lower levels of innovation and green growth. One of the most significant of these, with a consistency score of 81 %, is that increasing urbanization while decreasing green growth and global innovation leads to low ECD. According to the research findings, policymakers should strengthen the innovation ecosystem and focus on developing human capital to enhance energy diversity. Additionally, efforts should be made to combat corruption, stabilize governance, and improve oversight to ensure greater investment in clean energy.

Management of public financial debt in conditions of unbalanced supply and demand of energy resources

Financial debt management in the context of the energy crisis is an urgent problem that requires a strategic approach in countries with an unstable energy system. The imbalance between the supply and demand of energy resources generation creates a trap in which the growth of energy shortages leads to increased import costs, higher prices for end consumers and increased financial burden on the state. This, in turn, can provoke inflationary pressure, a decrease in the competitiveness of the national economy, an increase in public debt and social tension due to an increase in the cost of living and a decrease in the level of energy security. The research used the methods of scenario analysis, descriptive statistics, econometric, monographic and comparative analysis. The purpose of the article is to analyze the impact of energy crises on the state of state financial support, to determine ways to minimize risks and ensure financial stability. In the course of the study, the degree of influence of the imbalance of demand and supply of energy resources on the state financial debt was determined through the use of such tools as: analysis of market conditions, assessment of the level of demand and supply for energy resources. The paradigm of an integrated approach to the management of public debt in the context of energy crises is characterized, which is based on an integrated, multidimensional analysis and management of interrelationships between various economic, financial, social and political factors. It is emphasized that consideration of the energy sector should not take place in isolation, but in the context of its interaction with the financial capabilities of other sectors of the economy. Practical recommendations include risk assessment models related to energy crises and methods of stabilizing public finances, which can be used in the operational management of the state's financial debt. The method of integration and coordination of energy, economic, fiscal and social indicators is proposed for determining effective financial instruments and mechanisms for optimizing budget expenditures. It is concluded that in the conditions of imbalance of energy demand and supply, management of financial debt requires a strategic approach based on investments in clean energy, improvement of energy efficiency and accurate forecasting

Green growth a pathway to sustainable growth in developed countries

The quest by countries to drive to maturity stage of development especially by industrialize nations continued to impact on green economy despite policy framework and strategy implementation to curtail the activities. Emissions endanger the existence of secured environment. It is in the light of this literatures have concentrated on the area. This study seeks to investigate the determinants of green growth in 13 developed countries spanning 2010 to 2020. This study employed the ordinary least square regression with robust option, country specific effect and time fixed option, fixed effect and random effect estimation with time varying effect estimation options. This study also employed the generalized square regression technique with several robust option and post estimation test. The result of the study posit that CO2 emissions from gaseous fuel consumption which is (% of total) has a positive and significant relationship with green growth indicating that the consumption of this energy increases green growth. The coefficient Renewable energy consumption (% of total final energy consumption) revealed a positive effect on green growth. The coefficient Fossil fuel energy consumption (% of total energy) revealed a negative effect on green growth. In addition, Combustible renewable and waste (% of total energy) posit a negative relationship on green growth. A caveat for policy shows that in spite strategies and deliberate policy reform put in place to mitigate the effect on green growth, much is needed in terms of investment in clean energy. No doubt deliberate policy reform need to strengthen and enforced in this respect cannot be underscored

Attractiveness of clean energy stocks in Europe

The Ukrainian conflict has put in evidence the need to understand if oil and gas shocks increase the attractiveness of clean energy investments in Europe. If that is the case, clean energy investments are both the solution to the end of the month problem in Europe and to the end of the world problem due to climate change. Using monthly data for the period 2008–2021, we pinpoint supply and demand shocks in the oil and gas markets affecting Europe and investigate their effects on clean energy stock returns using a structural VAR model. We complete the analysis by studying the connection of these shocks with geopolitical risk. Our findings show that, clean energy stocks are positively impacted by a negative shock in the gas supply to Europe but are not significantly affected by a negative shock in global oil supply. Moreover, clean energy stocks are positively influenced both by oil-specific and gas-specific demand shocks. Finally, the favorable impact of economic demand shocks on clean energy returns lasts more in the oil price model than in the gas price model. Regarding geopolitical risk, we find a strong connectedness, particularly with shocks in the European gas market. These findings imply that, in Europe, clean energy is indeed a substitute to oil and gas in times of crisis. We are then likely to observe an increase in clean energy returns as prices of fossil sources spike.

Green finance development, environmental attention and investment in hydroelectric power: From the perspective of environmental protection law

Green finance offers essential financial services to promote green economic development, focusing on mitigating climate change, protecting the environment, and advancing clean energy initiatives. This study examines the relationships among green finance development, environmental attention, and investment in clean energy (hydroelectric power) via panel data from Chinese prefecture-level cities from 2010 to 2021. The empirical results indicate that green finance significantly increases investment in hydroelectricity. Additionally, government environmental attention and public environmental concern positively moderate this relationship. The heterogeneity analysis indicates regional and scale differences in the impact of green finance on hydroelectric power investment. In particular, a more significant effect on hydroelectric power investment is observed in the western and central regions, and small-scale cities experience a similar influence that megacities do.

Identification of Factors Affecting Net Zero Emission Level in Indonesia

Amid the rising risks of fossil fuel prices and uncertainties about the global energy supply, countries worldwide have the opportunity to strengthen the development of clean energy investments. This study analyzes the impact of economic growth and other variables, such as fossil fuel consumption, renewable electricity generation, and low-carbon energy use, on carbon dioxide emissions in Indonesia over the past 58 years, from 1965 to 2022. The analysis compares the findings with the Environmental Kuznets Curve (EKC) hypothesis using quadratic equations and cubic equations through the stepwise application of ordinary least square (OLS) methods. Projections suggest that this relationship could follow the Environmental Kuznets Curve (EKC) hypothesis with an inverted U-shape as GDP per capita increases, CO2 emissions per capita rise until reaching a turning point at $12,440 GDP per capita, after which CO2 emissions per capita potentially decrease with further GDP growth. The EKC is a theoretical framework that suggests that environmental degradation initially increases with economic growth, but it starts to decrease beyond a certain point. The analysis also shows that projections could follow an N-curve when variables such as fossil fuel consumption and low-carbon energy influence the NZE level. This indicates that Indonesia still needs to consider energy security in the short and medium term while advancing sustainable energy initiatives. There is also a need for support in research and development of environmentally friendly technologies to reduce emissions alongside national economic growth.

Strategic Management of Clean Energy Investments: Financial Performance Insights by Using BWM-based VIKOR and TOPSIS Methods

Market share of renewable energy companies increases with the increase in green-energy production. Companies increase their investments depending on the increase in energy production and can provide capital by offering the company to the public. Companies are traded in the exchange market in order to fund their increasing investments and access a large investor base. The increase in the market values of clean energy companies in recent years draws attention of investors. The study aims to identify key financial indicators that influence company growth and investment value by analyzing companies listed in the S&P North America and Europe Clean Energy Index. Therefore, the study evaluates the financial performance of clean energy companies using Best-Worst Method (BWM)-based VIKOR and TOPSIS methods to provide investors with a comprehensive assessment of investment opportunities in the clean energy sector. Also, the comparison of the two methods will contribute to the literature. The sample of this study consists of 10 big companies in S&P North America and Europe Clean Energy Index. Financial tables and exchange market data of the companies for the years 2019, 2020, and 2021 were used in this study. Remarkably, the analysis findings of the two methods differ from each other. The findings reveal significant insights into the financial health and growth potential of clean energy companies, offering valuable guidance for future.

Impact of carbon quota policy on clean energy investment strategies with financial constraints

The actions of electricity enterprises investing in clean energy are mainly affected by national policies and financial constraints. However, their joint impact on corporate decision-making for clean energy investment (CEI) is unclear. This study develops a game model to study the impact of carbon quota policies on corporate decision-making under financial constraints, including the grandfathering quota policy and benchmarking quota policy. A series of interesting conclusions were obtained. (1) With the goal of CEI, irrespective of financial constraints, the benchmarking quota policy is the best option. (2) With total carbon emissions (TCEs), consumer surplus, or enterprise profit as the goal, financial constraints will have an impact on optimal carbon quota policies. (3) In addition to TCEs, an increase in the financial constraints cap will enhance CEI, consumer surplus, and enterprise profit. These conclusions provide new insights for government policy-making and business decision-making, requiring comprehensive consideration of financial constraints.

The impact of financial decentralization and investments in green power on the ecology in the European union: How does the governance of institutions moderate this relationship?

There has been a growing emphasis in recent scholarship on the environmentalist movement, necessitating robust data to substantiate claims regarding the impacts of financial decentralization and investments in green power on the ecology. This study investigates the multifaceted impact of these factors within a subset of EU member states from 2000 to 2020, with a particular focus on their implications for environmental sustainability. Employing an advanced-panel method, the investigation utilizes enhanced self-regressive distribution delays (CS-ARDL) to analyze the cumulative and immediate connections between financial decentralization, green power investments, and environmental outcomes. The study reveals that effective governance of institutions plays a crucial role in moderating this relationship, influencing the extent to which financial decentralization and green energy investments contribute to environmental preservation. Preliminary findings indicate that regions with decentralized financial systems and substantial investments in green power exhibit reduced carbon dioxide emissions and improved environmental quality. This positive impact is further amplified by sound institutional oversight, ensuring that investments in clean energy align with ecological sustainability goals.The study also underscores the importance of a coordinated approach, where financial decentralization, investments in green power, and institutional governance synergistically contribute to environmental resilience and sustainable development. These efforts not only mitigate environmental challenges but also stimulate economic growth, job creation, and technological innovation in the renewable energy sector. The impact of financial decentralization and investments in green power on environmental sustainability in the European Union is significant, with governance playing a pivotal role in shaping positive outcomes. This study provides valuable insights for policymakers and stakeholders seeking to promote a greener and more sustainable future within the EU.

Short-term impacts vs. long-term contributions: The role of clean energy and ESG investments in China

This paper is the first in the literature on Environmental, Social, and Governance (ESG) investments and clean energy markets to employ a time-frequency-quantile framework, exploring the interrelations among energy commodities (such as oil, coal, and coke), clean energy equities, and ESG investments in China. The main findings reveal that, in the short term, clean energy equities are substantial net contributors, while commodity markets primarily act as recipients. Over a long horizon, ESG investments emerge as the foremost contributors, followed by coke and solar investments, while clean energy equities diminish in significance. Oil, nuclear equities, and green bonds are significant recipients in this dynamic. Furthermore, our analysis highlights the dominance of short-term shocks over long-term shocks in influencing these markets. Quantile analysis underscores unique behaviors under extreme market conditions. Notably, strong connections between oil and coke with other financial markets are observed during extreme periods, such as bull or bear phases, contrasting with their interactions under normal conditions. Conversely, coal exhibits strong interdependencies across various market scenarios, distinguishing it from the patterns observed for oil commodities.

A puzzle on environmental quality and energy security

i) This study examines the determinants of environmental quality. It is not possible to fully analyze the complex network that emerges from the set of interactions of these determinants, both with each other and with environmental security. Indeed, a number of variables and relationships hidden in the background of the puzzle such as ‘game theoretical interactions between economies on energy security’, characterize this network. However, this study, which includes energy security and environmental quality simultaneously, may open the door to revealing the key patterns of the current network.ii) This study, which investigates the network between environmental problems and energy security, provides empirical evidence that these two variables may well evolve by positively affecting each other under some conditions.iii) Using the current and sophisticated econometric methods such as CDw + based on Juodis and Reese (2022) test and CS-ARDL Model, over a panel of top 20 energy-using countries in the period 1980–2018, the empirical analysis of the article shows that an increase in energy security risk positively affects environmental quality in aggregate by motivating increased energy efficiency, triggering environmental awareness and regulations, and stimulating research and development activities for clean energy etc. Technologies. Therefore, this study concludes that potential policies and reforms, including reducing fossil fuel consumption, increasing energy efficiency in distribution and consumption, encouraging investments in clean energy are of key importance in making energy security sustainable in the long term by increasing environmental quality.

Clean innovation ecosystems: Lifting distressed communities in Appalachia with clean energy

The U.S. government has invested in distressed communities in the 21st century but with minimal effect. Regarding income, poverty, joblessness, and vacancy rates, the average distressed zip code in 2018 showed no improvement compared to its standing relative to the average prosperous zip code in 2000. We have discovered the formation of unique business clusters funded by public-private partnerships have the potential to make a difference in lifting distressed communities. Our research of literature and artifacts (photographs, videos, documents, digital media - websites or social media posts) suggests the discovery of a Clean Innovation Ecosystem (CIE). CIE refers to the network of social entrepreneurs, organizations, institutions, and individuals that work together to promote sustainable technologies and practices. As of the 4th quarter of 2023, manufacturing annual run rate construction spending has skyrocketed to over $200 billion. There are another $600 billion of Voltage Valley projects announced that have not yet been built. Over the past two decades, private investment has been between $20 billion and $100 billion annually in U.S. manufacturing infrastructure. Governments are making unprecedented investments in clean energy - which include approximately $400 billion in funding from the Inflation Reduction Act (IRA), $8 billion to establish 6–10 regional Hydrogen Hubs in the U.S., investments in carbon capture, renewable energy technologies, and other investments in clean energy sectors and technologies. All these investments come with the condition that the investment lifts distressed communities. This article explains why investing in Appalachia and geographic regions with similar characteristics will maximize the social benefit of public investment in a Clean Innovation Ecosystem. Our case study covers the Greater Central Appalachian Voltage Valley (GCAVV) – the states of Kentucky, West Virginia, Ohio, Upstate New York, and Michigan, as well as the Central Appalachian region as defined by 56 of the 85 distressed communities of Appalachia.

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

EU legislators approve the electricity market reform

The European electricity market is on the brink of transformative regulatory changes designed to reshape its landscape fundamentally. These changes encompass measures aimed at ensuring market stability, enhancing efficiency, promoting investment in clean energy, and safeguarding stakeholders from energy crises. Central to these reforms is the promotion of Power Purchase Agreements (PPAs) and Contracts for Difference (CFDs) to stabilize markets. Considering that existing barriers are impeding PPAs widespread adoption, the new design of the electricity market prompts regulatory adjustments to streamline access while maintaining fair competition. Concurrently, the design of CFDs must navigate competition distortions and ensure long-term viability, posing challenges for the European Commission in aligning them with State aid rules. Efforts to boost market efficiency include the reduction of intraday gate closure times, effective January 2026, and the establishment of minimum bid sizes to optimize resource allocation and pricing mechanisms. Moreover, the regulatory framework prioritizes incentivizing investments in clean energy, underscoring Europe’s commitment to sustainability. Member states will wield the power to implement non-fossil flexibility support schemes, offering payments for available non-fossil flexibility capacity, thereby fostering the transition towards cleaner energy sources. Lastly, protective measures are being instituted to shield consumers and undertakings from energy crises, emphasizing the need for resilience and stability in the sector. As these reforms unfold, policymakers must delicately balance fostering innovation, ensuring competitiveness, and safeguarding stakeholders’ interests. This article delves into the complexities of these reforms, offering insights into their implications and challenges.

Gold Production and the Global Energy Transition—A Perspective

Gold is neither a critical mineral nor a metal that is central to the global energy transition in terms of demand from new energy production technologies. Yet, gold is unique among mined commodities for its role in financial markets and for its global production footprint including in numerous developing economies. Since the production of gold incurs CO2 emissions and other environmental risks including water pollution and land degradation, gold producers seek to adopt clean production solutions through electrification and renewable energy adoption. Further, gold’s unique role as a store of value creates new potential green business models in gold, such as the digitalisation of in-ground gold inventories, which can further reduce negative environmental externalities from gold mining. A net-zero emissions, future global gold industry, is possible. Major gold producers are targeting net-zero Scope 1 and 2 emissions by 2050, coupled with a lower overall environmental footprint to meet heightened societal expectations for cleaner production. An analysis of emissions data from Australian gold mines shows systematic differences between mining operations. Further clean energy investment in gold production is required to reduce emission levels towards the target of net zero.