The Equilibrium Point Hypothesis: An Analysis of Firm Performance and Renewable Energy Deployment in the Publicly-Held, US Electrical Utility Industry

摘要

We examine the relationship between renewable energy deployment and financial performance for the 32 largest publicly held US electrical utility companies. A significant positive correlation is found between return on assets and renewable energy deployment and insignificant results for return on equity and renewable energy deployment. Special consideration is given to the relatively small extent of renewable energy deployment, as it could help explain the aforementioned positive correlation and support the discussion of the point (the equilibrium point) in renewable energy deployment, considering factors like firm size and dedication to non-renewables, it stops paying to be green.