Financial leasing and China’s renewable energy firms' investment behavior: In the context of government subsidy reduction

IF 16.3 1区工程技术 Q1 ENERGY & FUELS

Renewable and Sustainable Energy Reviews Pub Date : 2025-02-28 DOI:10.1016/j.rser.2025.115547

Yongjing Xie, Boqiang Lin

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Abstract

Renewable energy projects are characterized by substantial investment costs and significant capital requirements. In the context of reduced government subsidies, financial leasing has emerged as a crucial funding source for Chinese renewable energy projects. However, whether financial leasing can become an effective strategic choice to promote renewable energy investment in China remains to be empirically tested. Utilizing microdata from 114 Chinese renewable energy companies from 2011 to 2022, we have derived the following research conclusions: (1) Financial leasing significantly facilitates renewable energy investment. Bootstrap testing indicates that financial leasing can indirectly enhance renewable energy investment by alleviating financing constraints. (2) Financial mismatches undermine the positive impact of financial leasing on renewable energy investment. (3) Financial leasing significantly affects the investments of small and medium-sized renewable energy enterprises receiving lower government subsidies. However, no statistically significant evidence suggests a similar effect for large firms with substantial government subsidies. (4) There is a substitution effect between financial leasing and government subsidies. As government subsidies decline, the role of financial leasing in promoting renewable energy investment becomes increasingly significant. Based on these findings, we proposed targeted policy recommendations.

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来源期刊

Renewable and Sustainable Energy Reviews 工程技术-能源与燃料

CiteScore

31.20

自引率

5.70%

发文量

1055

审稿时长

62 days

期刊介绍： The mission of Renewable and Sustainable Energy Reviews is to disseminate the most compelling and pertinent critical insights in renewable and sustainable energy, fostering collaboration among the research community, private sector, and policy and decision makers. The journal aims to exchange challenges, solutions, innovative concepts, and technologies, contributing to sustainable development, the transition to a low-carbon future, and the attainment of emissions targets outlined by the United Nations Framework Convention on Climate Change. Renewable and Sustainable Energy Reviews publishes a diverse range of content, including review papers, original research, case studies, and analyses of new technologies, all featuring a substantial review component such as critique, comparison, or analysis. Introducing a distinctive paper type, Expert Insights, the journal presents commissioned mini-reviews authored by field leaders, addressing topics of significant interest. Case studies undergo consideration only if they showcase the work's applicability to other regions or contribute valuable insights to the broader field of renewable and sustainable energy. Notably, a bibliographic or literature review lacking critical analysis is deemed unsuitable for publication.