How robust is the renewable energy industry to political shocks? Evidence from the 2016 U.S. elections

AbstractClimate change mitigation relies increasingly on clean technologies such as renewable energy. Despite widespread success, further deployment of renewables has been met with resistance from voters and governments in several countries. How resilient is the renewable energy industry to adverse political events? I use the unexpected election of Donald Trump in the 2016 U.S. presidential race to study this question. As a vocal critic of renewables and a supporter of fossil fuels, his election is a plausible negative shock to the renewable energy sector. I examine stock market data to gauge the reaction of investors. I find that renewable energy stocks were adversely affected by the election. Overall, they experienced a cumulative abnormal loss in share values of about 6 percent on average over the twenty days that followed the election. However, I find that the negative effect is concentrated among non-U.S. firms. U.S. firms, on average, emerged unscathed. Non-U.S. companies, on the other hand, lost over 14 percent of their value in the aftermath of the election. This suggests that markets are more concerned by increasing obstacles to international business than a decrease of federal support for renewables.

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Promoting Renewable Energy to Cope with Climate Change—Policy Discourse in Israel

Sustainability ◽

10.3390/su13063170 ◽

2021 ◽

Vol 13 (6) ◽

pp. 3170

Author(s):

Avri Eitan

Keyword(s):

Climate Change ◽

Renewable Energy ◽

Greenhouse Gas Emissions ◽

Greenhouse Gas ◽

Climate Change Mitigation ◽

Renewable Energies ◽

Mitigation Strategies ◽

Policy Discourse ◽

Policy Makers ◽

Change Mitigation

Evidence shows that global climate change is increasing over time, and requires the adoption of a variety of coping methods. As an alternative for conventional electricity systems, renewable energies are considered to be an important policy tool for reducing greenhouse gas emissions, and therefore, they play an important role in climate change mitigation strategies. Renewable energies, however, may also play a crucial role in climate change adaptation strategies because they can reduce the vulnerability of energy systems to extreme events. The paper examines whether policy-makers in Israel tend to focus on mitigation strategies or on adaptation strategies in renewable energy policy discourse. The results indicate that despite Israel’s minor impact on global greenhouse gas emissions, policy-makers focus more on promoting renewable energies as a climate change mitigation strategy rather than an adaptation strategy. These findings shed light on the important role of international influence—which tends to emphasize mitigation over adaptation—in motivating the domestic policy discourse on renewable energy as a coping method with climate change.

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Examining the impact of factor price distortions and social welfare on innovation efficiency from the microdata of Chinese renewable energy industry

Renewable and Sustainable Energy Reviews ◽

10.1016/j.rser.2021.110901 ◽

2021 ◽

Vol 143 ◽

pp. 110901

Author(s):

Sen Qiao ◽

Hsing Hung Chen ◽

Rong Rong Zhang

Keyword(s):

Renewable Energy ◽

Social Welfare ◽

Energy Industry ◽

Factor Price ◽

The Impact ◽

Price Distortions ◽

Renewable Energy Industry

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Biased technological progress and total factor productivity growth: From the perspective of China's renewable energy industry

Renewable and Sustainable Energy Reviews ◽

10.1016/j.rser.2021.111136 ◽

2021 ◽

pp. 111136

Author(s):

Wang Zhen ◽

Zhao Xin-gang ◽

Zhou Ying

Keyword(s):

Renewable Energy ◽

Total Factor Productivity ◽

Productivity Growth ◽

Technological Progress ◽

Total Factor Productivity Growth ◽

Energy Industry ◽

Factor Productivity ◽

Renewable Energy Industry

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The Factors Affect Company Performance in Renewable Energy Industry

International Journal for Innovation Education and Research ◽

10.31686/ijier.vol5.iss6.748 ◽

2017 ◽

Vol 5 (6) ◽

pp. 188-204 ◽

Cited By ~ 2

Author(s):

YINLIN TSAI ◽

Johnny Tung

Keyword(s):

Renewable Energy ◽

Capital Intensity ◽

Performance Measure ◽

Energy Industry ◽

Long Term Results ◽

Company Performance ◽

Firm Level ◽

Country Level ◽

Performance Determinants ◽

Renewable Energy Industry

Concerns about global warming and climate change are generating interest in renewable energy measures with the purpose to minimize environmental impact. Promoting renewable energy production becomes indispensable since its represent a tiny fraction of energy consumed. The purpose of this study is to identify the performance determinants are divided in country specific advantages and firm specific advantages. Companies were selected from Bloomberg and filtered due to its information ava ilability from COMPUSTAT to construct a Panel Data structure. The results proved that both country level (shares of renewable and energy consumption) and firm level (market capitalization, employee growth rate and capital intensity) determinants were signi ficant in the renewable energy industry. Through the analysis, it’s possible to realize that return on assets it’s a performance measure with long term results, but unlike it, gross profit margin is variable that demonstrate short term results. We conclude that renewable energy industry has a great potential due to its results performed.

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Financial development, demographic changes, and the growth of the non-hydro renewable energy Industry—An empirical test based on R&D and financing costs

Renewable Energy ◽

10.1016/j.renene.2021.12.059 ◽

2021 ◽

Author(s):

Yu Ma ◽

Ting Ting Zhang ◽

Wenyu Qian ◽

DanQi Wei

Keyword(s):

Renewable Energy ◽

Financial Development ◽

Empirical Test ◽

Energy Industry ◽

Demographic Changes ◽

Financing Costs ◽

Renewable Energy Industry

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Setting an agenda for biofouling research for the marine renewable energy industry

International Journal of Marine Energy ◽

10.1016/j.ijome.2017.08.006 ◽

2017 ◽

Vol 19 ◽

pp. 292-303 ◽

Cited By ~ 8

Author(s):

J. Loxton ◽

A.K. Macleod ◽

C.R. Nall ◽

T. McCollin ◽

I. Machado ◽

...

Keyword(s):

Renewable Energy ◽

Energy Industry ◽

Marine Renewable Energy ◽

Renewable Energy Industry

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An Influence of Group Purchasing Organizations on Financial Security of SMEs Operating in the Renewable Energy Sector—Case for Poland

Energies ◽

10.3390/en13112926 ◽

2020 ◽

Vol 13 (11) ◽

pp. 2926 ◽

Cited By ~ 1

Author(s):

Grzegorz Zimon ◽

Marek Sobolewski ◽

Grzegorz Lew

Keyword(s):

Renewable Energy ◽

Environmental Changes ◽

Research Question ◽

Energy Sector ◽

Energy Industry ◽

The European Union ◽

Operating Cycle ◽

Cash Conversion Cycle ◽

Energy Companies ◽

Renewable Energy Industry

European countries are increasingly using renewable energy. Poland is an outsider of such solutions. The Polish energy sector is primarily based on energy produced from coal. However, environmental changes and regulations of the European Union are forcing the increased use of energy from renewable sources. Renewable energy is an industry that is still developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant limitation of the possibilities of renewable energy development. These actions have also resulted in lowering the profitability of the currently operating renewable energy enterprises, especially those from the sector of small and medium-sized enterprises. An opportunity for SMEs operating in the renewable energy sector is to merge into industry purchasing groups. The aim of the article—and at the same time the research question—is: Is it financially safer for renewable energy companies to operate within purchasing groups compared to companies operating independently in this industry? Traditional ways of purchasing can be transferred to integrated purchasing systems, which will be created by purchasing groups associating renewable energy companies. For this purpose, the financial effects of the implementation and functioning of the purchasing groups in the renewable energy sector in relation to entities operating independently were examined. In the research of renewable energy SMEs, a comparative analysis of key indicators determining the possibility of continuing the activity of these entities was made. The following indicators were examined: current financial liquidity ratio, return on sales, operating cycle, cash conversion cycle, share of receivables in current assets, share of inventory in current assets, turnover ratios, level of receivables, liabilities and profitability. The scientific literature is dominated by studies on purchasing groups in the pharmaceutical and construction industries. Thanks to the research conducted, it has been indicated that the renewable energy industry can also improve its profitability, and thus the possibility of safe continuation of operations by extending the business model to inter-entity cooperation within purchasing groups. Increasing the efficiency of individual entities of the renewable energy industry within purchasing groups becomes particularly important during the COVID-19 pandemic. Statistical analyses and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.

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