Next Article in Journal
Linear Hybrid Reluctance Motor with High Density Force
Previous Article in Journal
Synchronous Compensator Based on Doubly Fed Induction Generator to Improve the Power Quality under Unbalanced Grid Voltage Conditions
Article Menu
Issue 10 (October) cover image

Export Article

Open AccessArticle
Energies 2018, 11(10), 2804; https://doi.org/10.3390/en11102804

Fueling Global Energy Finance: The Emergence of China in Global Energy Investment

1
Global Development Policy Center, Boston University, Boston, MA 02215, USA
2
Woodrow Wilson School of Public and International Affairs, Princeton University, Princeton, NJ 08540, USA
*
Author to whom correspondence should be addressed.
Received: 11 August 2018 / Revised: 4 October 2018 / Accepted: 10 October 2018 / Published: 18 October 2018
Full-Text   |   PDF [6268 KB, uploaded 18 October 2018]   |  

Abstract

Global financial investments in energy production and consumption are significant since all aspects of a country’s economic activity and development require energy resources. In this paper, we assess the investment trends in the global energy sector during, before, and after the financial crisis of 2008 using two data sources: (1) The Dealogic database providing cross-border mergers and acquisitions (M&As); and (2) The “fDi Intelligence fDi Markets” database providing Greenfield (GF) foreign direct investments (FDIs). We highlight the changing role of China and compare its M&A and GF FDI activities to those of the United States, Germany, UK, Japan, and others during this period. We analyze the investments along each segment of the energy supply chain of these countries to highlight the geographical origin and destination, sectoral distribution, and cross-border M&As and GF FDI activities. Our paper shows that while energy accounts for nearly 25% of all GF FDI, it only accounts for 4.82% of total M&A FDI activity in the period 1996–2016. China’s outbound FDI in the energy sector started its ascent around the time of the global recession and accelerated in the post-recession phase. In the energy sector, China’s outbound cross-border M&As are similar to the USA or UK, located mostly in the developed countries of the West, while their outbound GF investments are spread across many countries around the world. Also, China’s outbound energy M&As are concentrated in certain segments of the energy supply chain (extraction, and electricity generation) while their GF FDI covers other segments (electricity generation and power/pipeline transmission) of the energy supply chain. View Full-Text
Keywords: FDI; M&A; energy; supply chain; inbound investment; outbound investment; Belt and Road FDI; M&A; energy; supply chain; inbound investment; outbound investment; Belt and Road
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Gopal, S.; Pitts, J.; Li, Z.; Gallagher, K.P.; Baldwin, J.G.; Kring, W.N. Fueling Global Energy Finance: The Emergence of China in Global Energy Investment. Energies 2018, 11, 2804.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top