Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast

Olha Prokopenko (), Tetiana Kurbatova, Marina Khalilova, Anastasiia Zerkal, Gunnar Prause, Jacek Binda, Temur Berdiyorov, Yuriy Klapkiv, Sabina Sanetra-Półgrabi and Igor Komarnitskyi
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Olha Prokopenko: Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
Tetiana Kurbatova: Science Policy Research Unit, University of Sussex Business School, University of Sussex, Brighton BN1 9RH, UK
Marina Khalilova: Department of Monitoring and Quality, International University of Kyrgyzstan, Bishkek 720007, Kyrgyzstan
Anastasiia Zerkal: Department of Marketing and Logistics, Zaporizhzhia Polytechnic National University, 69063 Zaporizhzhia, Ukraine
Gunnar Prause: Wismar Business School, Wismar University, 23966 Wismar, Germany
Jacek Binda: Department of Social and Technical Sciences, Bielsko-Biała School of Finance and Law, 43-382 Bielsko-Biala, Poland
Temur Berdiyorov: Department of Economics and Management, Jizzakh Polytechnic Institute, Jizzakh 130100, Uzbekistan
Yuriy Klapkiv: Department of Insurance, Institute of Finance, Faculty of Economics and Sociology, University of Lodz, 90-136 Lodz, Poland
Sabina Sanetra-Półgrabi: Department of Administration and Public Policy, Pedagogical University of Krakow, 30-084 Krakow, Poland
Igor Komarnitskyi: Faculty of the Hotel, Restaurant and Tourism Business, Kyiv National University of Culture and Arts, 01601 Kyiv, Ukraine

Energies, 2023, vol. 16, issue 3, 1-17

Abstract: Renewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state funding, the possibilities of which are limited. The potential of attracting private investments depends directly on their impact on companies’ profitability indicators, and the uncertainty regarding the return on investments is one of the main barriers affecting investors’ decision-making. Based on a vector autoregressive model for analysing the stationary time series, the paper explores the impact of long-term investments and research and development costs in renewable energy technologies on the financial performance of ten of the largest companies operating in this field. The study’s results showed that investments and spending on research and development positively affect such companies’ profitability indicators as earnings before interest, taxes, depreciation and amortisation, earnings before interest and tax, net income, and return on investment. The obtained results can be used to substantiate the economic effectiveness of investments in developing and improving renewable energy technologies when forming the companies’ financial policies to support them.

Keywords: renewable energy; investments; research and development; earnings before interest; taxes; depreciation and amortisation; earnings before interest and taxes; net income; return on investments (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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