Renewable Energy and Financial Performance: Cross-country Evidence

29 Pages Posted: 7 Jul 2020 Last revised: 9 Apr 2021

See all articles by Ricardo Correia

Ricardo Correia

Universidad Autónoma de Madrid

Carmen Mendoza

Universidad Autónoma de Madrid

Nuria Suárez

Universidad Autónoma de Madrid

Date Written: March 1, 2021

Abstract

The objective of this paper is to empirically explore the economic and financial effects of renewable energy consumption on firms’ financial performance. We collect information from Bloomberg and ORBIS (Bureau Van Dijk) databases of a sample of more than 500 firms from 18 countries during the 2009-2017 period. Applying a 2SLS methodology to control for the potential endogeneity concerns, our results indicate a positive effect of renewable energy consumption on firms’ financial performance. This relation is not homogeneous across firms or countries. In particular, our results indicate that this relation is dependent on specific firm-level characteristics and on the national legal and institutional environment.

Keywords: Renewable energy consumption; Financial performance; Firm- and country-level characteristics

Suggested Citation

Correia, Ricardo and Mendoza, Carmen and Suárez, Nuria, Renewable Energy and Financial Performance: Cross-country Evidence (March 1, 2021). Available at SSRN: https://ssrn.com/abstract=3624980 or http://dx.doi.org/10.2139/ssrn.3624980

Ricardo Correia

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

Carmen Mendoza

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

Nuria Suárez (Contact Author)

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

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