Effect of the COVID-19 Pandemic on Renewable Energy Firm’s Profitability and Capitalization
Shaikh Z.A. Datsyuk P. Baitenova L.M. Belinskaja L. Ivolgina N. Rysmakhanova G. Senjyu T.
June-1 2022MDPI
Sustainability (Switzerland)
2022#14Issue 11
The COVID-19 pandemic has led many governments to impose restrictive measures that have contributed to a decline in the demand for goods and services, leading to an economic crisis. This study proves a novelty that implies a rise in the capitalization of renewable energy companies during the coronavirus pandemic. The study is based on the hypothesis that, at a time of economic crisis, the prospect of investing in clean energy has increased, through the need to protect the environment and ensure clean air. The analysis provided additional results that there is an inverse relationship between two economic indicators of firms, namely, the percentage change in profitability and capitalization of firms between 2020 and 2021. Analysis of data from companies included in TRBC Industry Name Renewable Fuels provided numerical results that show an average increase in firms’ capitalization of 86%. The study uses analysis techniques such as covariance and correlation. The results show an increase in capitalization of renewable energy companies by 150%, while there is a decrease in income by 2%. However, the capitalization of fossil fuel companies has increased, with an average growth rate of 35%. This situation in the fossil energy market is that company revenues fell by 32% while capitalization increased by 35%. It proves a bubble in the non-renewable energy market. This paper suggests that the period of coronavirus infection has seen a slowdown in economic growth in many countries around the world, but a switch to renewable energy will help improve the quality of life of the population and ensure economic growth.
capitalization , COVID-19 , economic crisis , economic growth , renewable energy
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Faculty of Computer Science & Information Technology, Benazir Bhutto Shaheed University Lyari, Karachi, 75660, Pakistan
Financial Faculty, Financial University under the Government of the Russian Federation, Moscow, 124167, Russian Federation
Digital Engineering and Data Analysis Department, Almaty University of Power Engineering and Telecommunications (AUPET) named after G. Daukeev, Almaty, 050013, Kazakhstan
Business Department, Faculty of Economics and Business Administration, Vilnius University, Vilnius, 10222, Lithuania
Department of Finance and Prices, Plekhanov Russian University of Economics, Moscow, 115903, Russian Federation
Department of Economics and Management, Korkyt Ata Kyzylorda University, Kyzylorda, 120000, Kazakhstan
Department of Electrical and Electronics Engineering, University of the Ryukyus, Okinawa, 903-0213, Japan
Faculty of Computer Science & Information Technology
Financial Faculty
Digital Engineering and Data Analysis Department
Business Department
Department of Finance and Prices
Department of Economics and Management
Department of Electrical and Electronics Engineering
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