Empowering green innovation: The impact of green subsidies on Chinese firms
As a form of targeted public expenditure, green subsidies play a crucial role during economic transformation. Their potential to foster green innovation, and ultimately support sustainable development, remains an important subject of empirical research. Drawing on panel data from Chinese A-share lis...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-12-01
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| Series: | Sustainable Futures |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S266618882500454X |
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| author | Shuyi Liu Ning Ba Yu Hao |
| author_facet | Shuyi Liu Ning Ba Yu Hao |
| author_sort | Shuyi Liu |
| collection | DOAJ |
| description | As a form of targeted public expenditure, green subsidies play a crucial role during economic transformation. Their potential to foster green innovation, and ultimately support sustainable development, remains an important subject of empirical research. Drawing on panel data from Chinese A-share listed companies spanning 2007 to 2022, this research utilizes a three-way fixed effects framework to evaluate how green subsidies promote environmental progress. The empirical evidence suggests that, while green subsidies significantly enhance investment in innovation, their direct impact on innovation outputs is relatively limited. This trend is consistent across various types of firms, highlighting the initial success of green subsidy policies in motivating innovation investment, but also underscoring the necessity of further exploration and refinement to achieve a more sustainable impact on innovation outcomes. Notably, R&D outputs in technology-intensive firms paradoxically declined after receiving green subsidies, revealing limitations in the current policy framework’s effectiveness. These findings emphasize the importance of tailoring subsidy policies to align with the heterogeneous demands of enterprises. Our research contributes to this discussion by emphasizing the need for a more nuanced policy approach that balances innovation incentives with long-term economic sustainability. |
| format | Article |
| id | doaj-art-1f9a95f57ccf495f89e4455823a07264 |
| institution | Kabale University |
| issn | 2666-1888 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj-art-1f9a95f57ccf495f89e4455823a072642025-08-20T03:24:16ZengElsevierSustainable Futures2666-18882025-12-011010088910.1016/j.sftr.2025.100889Empowering green innovation: The impact of green subsidies on Chinese firmsShuyi Liu0Ning Ba1Yu Hao2School of Business Administration, Northeastern University, Shenyang 110167, ChinaSchool of Economics, Beijing Institute of Technology, Beijing 100081, ChinaSchool of Economics, Beijing Institute of Technology, Beijing 100081, China; Faculty of Economics, Shenzhen MSU-BIT University, Shenzhen 518172, China; College of Economics and Management, Tarim University, Alar 843300, China; Corresponding author at: School of Economics, Beijing Institute of Technology, 5 Zhongguancun South Street, Haidian District, Beijing 100081, China.As a form of targeted public expenditure, green subsidies play a crucial role during economic transformation. Their potential to foster green innovation, and ultimately support sustainable development, remains an important subject of empirical research. Drawing on panel data from Chinese A-share listed companies spanning 2007 to 2022, this research utilizes a three-way fixed effects framework to evaluate how green subsidies promote environmental progress. The empirical evidence suggests that, while green subsidies significantly enhance investment in innovation, their direct impact on innovation outputs is relatively limited. This trend is consistent across various types of firms, highlighting the initial success of green subsidy policies in motivating innovation investment, but also underscoring the necessity of further exploration and refinement to achieve a more sustainable impact on innovation outcomes. Notably, R&D outputs in technology-intensive firms paradoxically declined after receiving green subsidies, revealing limitations in the current policy framework’s effectiveness. These findings emphasize the importance of tailoring subsidy policies to align with the heterogeneous demands of enterprises. Our research contributes to this discussion by emphasizing the need for a more nuanced policy approach that balances innovation incentives with long-term economic sustainability.http://www.sciencedirect.com/science/article/pii/S266618882500454XGreen subsidiesGreen innovationPolicy incentivesInnovation drivers |
| spellingShingle | Shuyi Liu Ning Ba Yu Hao Empowering green innovation: The impact of green subsidies on Chinese firms Sustainable Futures Green subsidies Green innovation Policy incentives Innovation drivers |
| title | Empowering green innovation: The impact of green subsidies on Chinese firms |
| title_full | Empowering green innovation: The impact of green subsidies on Chinese firms |
| title_fullStr | Empowering green innovation: The impact of green subsidies on Chinese firms |
| title_full_unstemmed | Empowering green innovation: The impact of green subsidies on Chinese firms |
| title_short | Empowering green innovation: The impact of green subsidies on Chinese firms |
| title_sort | empowering green innovation the impact of green subsidies on chinese firms |
| topic | Green subsidies Green innovation Policy incentives Innovation drivers |
| url | http://www.sciencedirect.com/science/article/pii/S266618882500454X |
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