Renewable Energy Policies and PrivateCapital Participation- A Study on Energy Investment Projects in BRICountries
Zhang Zhongxiang1,2, and Wang Mengjiaqi*1
1 Ma Yinchu School of Economics, Tianjin University (TJU), Tianjin, China
2 China Academy of Energy, Environmental and Industrial Economics (CAEEIE), Tianjin, China
Abstract: This paper examines the effectiveness of renewable energy policies incatalyzing private green investment based on data of 1,293 energy investment projects from45 BRI countries between 2010 and 2019. According to our empirical results, a country’srenewable energy policies have a key influence in private capital decisions to make andscale up green investments. Regression results show that renewables policies encourageprivate green investments only when the renewables market is still in its infancy. When themarket enters growth and maturity stages, however, financial markets will take the place ofpolicy incentives as the primary force behind private green investments. While renewablespolicies help scale up private green investments by broadening the renewable energymarket, it is yet unclear how such the policies promote renewable energy innovation. Inorder to advance green development under the Belt and Road Initiative (BRI), we shouldexpand access to financing for the renewable energy industry in addition to improving thenational renewable energy policy system.
Keywords: Belt and Road Initiative (BRI), renewable energy policy, private capital, green
JEL Classification Code: O13, P28, Q48
DOI: 10.19602/j.chinaeconomist.2023.03.05PDF Download