Energy constraints, green technological progress and business profit ratios: evidence from big data of Chinese enterprises

This study tested the influences of energy constraints on business profit ratios based on mathematical models of energy constraints, green technological progress and business profit ratios using data of 1,039,330 qualified Chinese industrial enterprises between 2001 and 2013. Test results showed a generally non-linear relationship between energy constraints and business profit ratios. Specifically, for high-tech enterprises in East China, the relationship is U-shaped; and for low-tech enterprises in Middle and West China, the relationship is N-shaped. Proper energy policies can effectively improve business profit ratios and stimulate green technological progress in enterprises. Although China's energy policies still have not realised relevant practical effects, proper energy policies should be implemented according to the features of different areas and enterprises. This is of great significance to green technological progress and enterprise development.