Research on Financing Models and Benefit Assessment of Traditional Energy Enterprises’ Investments in Renewable Energy Projects in the Asia-Pacific Region

Abstract

The paper describes variation of investment financing model of investment by incumbent energy firms in the Asia-Pacific region. The research compares 19 companies in China, Japan, South Korea, Australia, and New Zealand over the period of 2018-2023 and contrasts state-led models in East Asia with market-based models in Oceania. The comparative analysis explains five financing modes: self-financing, bank loan, equity financing, green bonds, and government subsidy. Data sources consist of company reports, ESG reports, and government filings to examine financing deals and investment outcomes. Findings indicate dramatic regional variation in performance. East Asian companies achieve greater project success rates of 89.2% and cheaper costs of financing at 4.2% under government coordination and bank involvement. Oceania companies attain greater risk-adjusted returns of 12.4% under competitive capital allocation and private sector direction. Statistical tests confirm the determinative influence of institutional environments in the choice of financing models. State-led models perform best on coordination effectiveness, and risk mitigation and market-based programs perform best on capital efficiency and innovation adoption. Based on empirical observation of the governance-financing relationships in renewable energy transitions, the paper argues that institutional design needs to be responsive to regional development priorities as opposed to uniformity. This paper adds to an understanding of how incumbent energy companies govern sectoral change through region-specific finance models.