Energy Companies Investment in Renewable Energy Production and its Effect on Financial Performance
Persistent URL
Author(s)
Phillips, Holden
Date Issued
April 29, 2024
Abstract
As the effects of climate change become more prevalent, the world must become more sustainable in order to combat them. One of the ways that energy companies are contributing to increasing sustainability is by increasing their renewable energy generation infrastructure to provide clean, emission-free energy. In the past, due to high upfront costs related to building renewable energy infrastructure, renewable energy investments had to be subsidized in order to achieve financial viability. This study performed a regression analysis to test whether recent developments in renewable energy technology, which have led to cost decreases, have made renewable energy investments financially viable. Using data collected from company documents and online databases to analyze renewable energy generation capacity and financial metrics for the year 2022, this study provides evidence that there is no statistically significant relationship between investment in renewable energy and financial performance. Resulting from a lack of evidence supporting an advantage for either green or non-green companies, a mixed asset base was recommended due to its ability to capture the advantages of both hydrocarbon and renewable electricity generation sources.
Major
Business
First Reader(s)
Onyeiwu, Stephen Z.
Other Reader(s)
Sun, Xiaohan
Department
Business and Economics
Type of Publication
Senior Project Paper
File(s)![Thumbnail Image]()
Name
Senior Comprehensive Project Final Copy - Holden E. Phillips.pdf
Size
1.09 MB
Format
Adobe PDF
Checksum (MD5)
fadc9434a1d7a39d940b06d7d15e947d