Research On The Influence Of Green Institutional Environment On Renewable Energy Investment

The development and utilization of renewable energy has the dual benefits of environment and economy,and plays a vital role in promoting the sustainable development of China's economy.However,the renewable energy industry,an emerging industry,is facing serious technical and financial problems,and the solution to these problems depends on the guidance of national policies.Therefore,this paper intends to include a serious of environmental and economic policies with “green” attributes adopted by the government in order to promote green development into a unified framework,that is,a green institutional environment,and further explores the complicated nonlinear impact of green institutional environment on renewable energy investments.To be specific,firstly,this paper proposes the concept of green institutional environment,and constructs green institutional environmental system from three aspects of beforehand,halfway through and afterwards.Meanwhile,based on the current situation of China's green institutional environment,this paper builds the green institutional environmental index system through selecting relevant indicators,and further simulates green institutional environmental index through the Functional Data Analysis method and the functional entropy weight method,in order to measure the development level of China's green institutional environment.Secondly,this paper adopts semiparametric regression model to study the nonlinear effect of green institutional environment and its components at different levels on renewable energy investments.Thirdly,based on grouped sample regression,this paper adopts fixed and random effect panel model to analyze the effects and differences of green institutional environment on renewable energy investments regarding different industry types and enterprise scales.The results show that,firstly,there is a “W-shaped” nonlinear relationship between green institutional environment and renewable energy investments.It indicates that green institutional environment has two-way effect on renewable energy investment.On one hand,green institutional environment can promote renewable energy investments;on the other hand,the unstable green institutional environment will have a restraining effect on renewable energy investment.The action direction of the green institutional environment level on renewable energy investments depends on the degree of these two effects.Secondly,considering the influence of its components at different levels,this paper finds that there is also a “W-shaped” relationship between the green standardized institution and renewable energy investment,which indicates that the effect of a green institutional environment on renewable energy investment is reflected mainly in green standardized institution.Green supervision and public institution can produce a strong promotion effect on renewable energy investment,with a coefficient of 10.8173,however,the effect of the green accounting institution on renewable energy investment is not significant.Thirdly,from the perspective of industry type,the impact of green institutional environment level on renewable energy investment presents obvious industry differences.Specifically,green institutional environment can greatly promote solar energy investment,with a coefficient of 1.0697,but inhibits biomass energy investment with a coefficient of-1.2101.Fourth,from the perspective of enterprise scale,green institutional environment can significantly promote renewable energy investment of medium-,small-,and micro-sized enterprises,with a coefficient of 1.8276,but the results for large enterprises are not significant.On the basis of these results,this paper holds that government should focus on building a green institutional environment,mainly based on green standardized institution and supplemented by green supervision and public institution and green accounting institution,and rationally plans the promulgation of different types of policies.While giving full play to the guiding role of policies,government should also pay attention to its rationality,avoid excessive implementation,and create a wellordered green institutional environment.Besides,policies should also be implemented according to specific circumstances,including generating an emphasis on vulnerable industries,and providing more policy support in a targeted manner based on the different development characteristics of various renewable energy industries,in order to precisely support enterprise development.