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The primary objective of this study is to investigate the impact of renewable energy consumption and low-carbon technologies on a company's financial performance. This study utilizes panel data from listed companies on the Tehran Stock Exchange from 2012 to 2021 to examine the effect of renewable energy sources—specifically solar, wind, nuclear, and hydrogen on companies' financial performance. The findings indicate that using renewable and low-carbon energy positively and significantly impacts return on assets (ROA), return on equity (ROE), and Tobin’s Q. However, nuclear and solar energy do not have a statistically significant effect on Tobin’s Q. In contrast, wind and solar energies have the most substantial positive effects, while nuclear and hydrogen energy exert a relatively lower impact on ROA and ROE. The results are consistent across various industries. Furthermore, the financial performance indicators for companies in 2019 showed the lowest average, whereas 2018 marked their best financial performance. Additionally, the results from the dynamic Generalized Method of Moments (GMM) model, revealing that approximately 60 % of a company's return on assets, 20 % of its return on equity, and 45 % of Tobin’s Q are determined by the previous period's performance. This research offers new insights into the impact of renewable and low-carbon energy consumption on corporate financial performance, which can be valuable for managers, investors, policymakers, and researchers. By demonstrating the economic advantages of utilizing these energy sources, the study can encourage the adoption of sustainable energy technologies and reduce dependence on fossil fuels.
Salehi et al. (Sun,) studied this question.