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Venture capital and the resilience of renewable energy enterprises: Nonlinear relationships and supply chain spillover effects

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  • Lin, Boqiang
  • Xie, Yongjing

Abstract

As renewable energy (RE) subsidies reduce, venture capital (VC) has become a key funding strategy for RE enterprises. However, its impact on enterprise resilience, particularly under varying government subsidies (GS) levels, remains unclear. Therefore, we used data from 114 RE enterprises in China from 2011 to 2022 and employed a two-way fixed effects model and a partially linear functional-coefficient model to investigate the relationship between VC, GS, and enterprise resilience. Our results show that VC significantly improves the resilience of RE enterprises in an indirect way via promoting green technology innovation and enhancing operational efficiency. As the intensity of GS increases, the positive impact of VC on the resilience of RE enterprises initially increases, then decreases, and eventually becomes insignificant. The effect of VC on the resilience of upstream and midstream RE enterprises and those in midwestern regions is more significant. Additionally, VC improves the capacity utilization of RE enterprises, thereby generating positive spillover effects on the resilience of their suppliers. Overall, our study's innovation lies in capturing the dynamic relationship between VC and the resilience of RE enterprises from a nonlinear perspective, while also examining the spillover effects along the supply chain.

Suggested Citation

  • Lin, Boqiang & Xie, Yongjing, 2026. "Venture capital and the resilience of renewable energy enterprises: Nonlinear relationships and supply chain spillover effects," Renewable Energy, Elsevier, vol. 256(PB).
    • Handle: RePEc:eee:renene:v:256:y:2026:i:pb:s0960148125017173
    DOI: 10.1016/j.renene.2025.124053
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