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Analysis of the Financing Structure of China’s Listed New Energy Companies under the Goal of Peak CO 2 Emissions and Carbon Neutrality

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  • Fuyou Li

    (School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China)

  • Hao Di

    (School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China)

Abstract

Under China’s “Dual Carbon” strategic goal, electric energy substitution on the energy consumption side and clean substitution on the energy supply side have become an important path to achieve peak CO 2 emissions and carbon neutrality. Adjusting the energy structure and encouraging new energy to replace traditional energy is an important manifestation of China’s energy supply revolution. Therefore, China’s new energy companies have grown rapidly over the past decade. The development and growth of this industry is inseparable from government policy support. The profitability and economy are essential for the new energy industry to support its sustainable development., especially the choice of business models such as operation model and financing structures. Therefore, we build extended panel vector autoregression (PVAR) models with two-step system GMM(SYS-GMM) estimator which introduced predetermined and strictly exogenous variables to explore the dynamic correlation between financing structure and economic performance of China’s new energy public companies. The number of patent approvals and financial leverage are introduced as exogenous control variables. The results show that although the increase in costs caused by financing behavior will have a negative impact on the company’s return on equity in the short term, with the rational investment and utilization of funds, the negative impact will gradually weaken. Listed new energy companies can effectively use financing funds, and the use of different financing tools has different effects on company performance. Although debt financing can help promote the company’s profitability, it is detrimental to its future growth capacity.

Suggested Citation

  • Fuyou Li & Hao Di, 2021. "Analysis of the Financing Structure of China’s Listed New Energy Companies under the Goal of Peak CO 2 Emissions and Carbon Neutrality," Energies, MDPI, vol. 14(18), pages 1-15, September.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:18:p:5636-:d:631205
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    2. Fayu Chen & Jinhao Liu & Xiaoyu Liu & Hua Zhang, 2023. "Static and Dynamic Evaluation of Financing Efficiency in Enterprises’ Low-Carbon Supply Chain: PCA–DEA–Malmquist Model Method," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    3. Zhongliang Meng & Yun Chen & Shizhen Li, 2022. "The Shape Optimization and Experimental Research of Heave Plate Applied to the New Wave Energy Converter," Energies, MDPI, vol. 15(4), pages 1-12, February.
    4. Zhu, Qing & Lu, Kai & Liu, Shan & Ruan, Yinglin & Wang, Lin & Yang, Sung-Byung, 2022. "Can low-carbon value bring high returns? Novel quantitative trading from portfolio-of-investment targets in a new-energy market," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 755-769.

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