بازده سرمایه گذاری صنعت انرژی جدید در چین Investment efficiency of the new energy industry in China

1. Introduction China is the world’s largest energy consumer, consuming one fifth of global energy. Thus, it will play a pivotal role in the global transition to a new era of sustainable energy. Because China relies on energy imports for more than 60% of its total energy supply, there have been growing concerns about the country’s energy security and about the environmental impact of its reliance on fossil fuels. In response to these concerns, China has accelerated its development and utilization of new renewable energy sources, such as solar, wind, nuclear and biomass. The market has been expanding – with significant economic benefits – and China has become a global leader in renewable energy. The country has the world’s largest capacity of both wind and hydroelectric power, owns the vast majority of solar heating and biogas facilities in the world, and has successfully developed a solar photovoltaic industry that now operates globally. In 2013, newly installed renewable energy capacity in China exceeded that of Europe and the rest of the Asia Pacific region (IRENA, 2014). China’s renewable energy sector continues to grow rapidly: a new record for global investment in renewable energy was set in 2015, when the funds committed to renewable energy (excluding large hydro-electric projects) increased by 5% to USD285.9 billion. According to Bloomberg (2016), investments in renewable energy declined by 8% in developed economies but increased by 19% in developing countries. The increased investment by developing countries is largely driven by China, where investment increased by 17% to USD102.9 billion, accounting for 36% of the world’s total investment in renewable energy. Against the background of this flourishing and promising development, maintaining this momentum and advancing future development is of strategic importance for policy makers and also has significant implications for new energy firms. Improving investment efficiency is the key to the success of a globally viable new energy industry in the long run; that challenge is the focus of this paper.