Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?

The study aims to test the renewable energy productivity and energy efficiency for energy projects with the role of cost of capital in China from 2009 to 2023. The study examined the results with correlation analysis, co-integration analysis, efficiency analysis, and generalized methods of moments (...

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Main Authors: Xiaojuan Yang, Huamin Zhou, Junjun Gao
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Energy Strategy Reviews
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2211467X24003171
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author Xiaojuan Yang
Huamin Zhou
Junjun Gao
author_facet Xiaojuan Yang
Huamin Zhou
Junjun Gao
author_sort Xiaojuan Yang
collection DOAJ
description The study aims to test the renewable energy productivity and energy efficiency for energy projects with the role of cost of capital in China from 2009 to 2023. The study examined the results with correlation analysis, co-integration analysis, efficiency analysis, and generalized methods of moments (GMM) analysis technique. The results shown that the cost of capital for energy projects significantly determines renewable energy productivity. In addition, energy productivity also ensures the energy efficiency of renewable energy projects in China. The findings further explain that renewable energy productivity and efficiency foster energy transition significantly; it is also based on the cost of capital of the renewable energy project. In comparison, gross domestic product and urbanization show divergent controlling behavior in study results. Correspondingly, the study also suggested numerous policy implications for decision-makers. However, the novelty of research is contained in its framework. This investigation offers the first attempt at demonstrating how capital costs are detrimental to two other features typically studied separately – renewable energy productivity and energy efficiency.
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publishDate 2025-01-01
publisher Elsevier
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series Energy Strategy Reviews
spelling doaj-art-6cb525c5169d4c0693de44bf2d183ac62025-08-20T01:56:48ZengElsevierEnergy Strategy Reviews2211-467X2025-01-015710160810.1016/j.esr.2024.101608Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?Xiaojuan Yang0Huamin Zhou1Junjun Gao2School of Business, Guangxi University, Nanning, Guangxi, 530004, ChinaSchool of Economics and Management, Guangxi Vocational University of Agriculture, Nanning, Guangxi, 530000, ChinaSchool of Business & Economics, University of Science and Technology, China; Corresponding author.The study aims to test the renewable energy productivity and energy efficiency for energy projects with the role of cost of capital in China from 2009 to 2023. The study examined the results with correlation analysis, co-integration analysis, efficiency analysis, and generalized methods of moments (GMM) analysis technique. The results shown that the cost of capital for energy projects significantly determines renewable energy productivity. In addition, energy productivity also ensures the energy efficiency of renewable energy projects in China. The findings further explain that renewable energy productivity and efficiency foster energy transition significantly; it is also based on the cost of capital of the renewable energy project. In comparison, gross domestic product and urbanization show divergent controlling behavior in study results. Correspondingly, the study also suggested numerous policy implications for decision-makers. However, the novelty of research is contained in its framework. This investigation offers the first attempt at demonstrating how capital costs are detrimental to two other features typically studied separately – renewable energy productivity and energy efficiency.http://www.sciencedirect.com/science/article/pii/S2211467X24003171Renewable energy productivityEnergy efficiencyEnergy projectsCost of capitalGDP
spellingShingle Xiaojuan Yang
Huamin Zhou
Junjun Gao
Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
Energy Strategy Reviews
Renewable energy productivity
Energy efficiency
Energy projects
Cost of capital
GDP
title Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
title_full Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
title_fullStr Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
title_full_unstemmed Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
title_short Enhancing renewable energy productivity and energy efficiency of energy projects: How does cost of capital influence?
title_sort enhancing renewable energy productivity and energy efficiency of energy projects how does cost of capital influence
topic Renewable energy productivity
Energy efficiency
Energy projects
Cost of capital
GDP
url http://www.sciencedirect.com/science/article/pii/S2211467X24003171
work_keys_str_mv AT xiaojuanyang enhancingrenewableenergyproductivityandenergyefficiencyofenergyprojectshowdoescostofcapitalinfluence
AT huaminzhou enhancingrenewableenergyproductivityandenergyefficiencyofenergyprojectshowdoescostofcapitalinfluence
AT junjungao enhancingrenewableenergyproductivityandenergyefficiencyofenergyprojectshowdoescostofcapitalinfluence