Do government subsidies improve innovation investment for new energy firms: A quasi-natural experiment of China's listed companies

Wu, Zhanchi; Fan, Xuejun; Zhu, Bangzhu; Xia, Jiahui; Lin, Zhang; Wang, Ping

doi:10.1016/j.techfore.2021.121418

Cited by 137 publications

(35 citation statements)

References 40 publications

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“…Using DID approaches from the literature as a guide ( 45 ), the GFPs' influence over the agriculture investment of the farmers in regions with higher CEF is examined in current research. This DID approach is useful in determining a policy's influence through analyzing the policy's various impacts on the control and treatment groups ( 46 ): DID model is employed in observational studies where the control and treatment groups can't be presumed to be interchangeable. It is based on a relatively rigorous concept of exchangeability, i.e., in other words, in the lack of treatment, the unobserved variations between the control and treatment groups are identical throughout time.…”

Section: Methodsmentioning

confidence: 99%

An Estimation of the Effect of Green Financial Policies and Constraints on Agriculture Investment: Evidences of Sustainable Development Achievement in Northwest China

Mei

Khan

et al. 2022

Front. Public Health

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Farming' community actively participating as micro-actors in green finance schemes is critical for regional planning and development. On the basis of the extent to which financial progress and sustainable development are coordinated, in a difference-in-differences approach, this article employed 2350 small investigations to estimate the influence of green-finance strategies on peasants' agriculture investment and developed a mediation effect method. It investigates the role of peasant managerial variability in mediating the influence of financial constraints. The results indicate that the introduction of a financial restriction variable reduces the positive impacts of green-finance regulations on peasants' agricultural investment. Moreover, peasants who participate in non-agricultural management exercises are more inclined to take advantage of green financing regulations and are affected via financial restrictions in mediate means. The building of a green-finance sector in remote regions should accomplish unique positioning and rapid growth.

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Section: Methodsmentioning

confidence: 99%

An Estimation of the Effect of Green Financial Policies and Constraints on Agriculture Investment: Evidences of Sustainable Development Achievement in Northwest China

Mei

Khan

et al. 2022

Front. Public Health

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“…As the direct effect (i.e., the coefficient of Subsidy in Column 3) is the opposite of the indirect effect (the coefficient of Subsidy in Column 1 multiplied by the coefficient of RDInput in Column 3), no mediating effect of R&D investment is found at this time, but a suppressing effect (MacKinnon et al, 2002). Environmental subsidies crowd out firms' R&D spending, which may be related to shortsighted management decisions caused by shareholder debt constraints (Wu et al, 2022).…”

Section: Mechanism Analysismentioning

confidence: 97%

The impact of environmental subsidy on the performance of corporate environmental responsibility: Evidence from China

Chen

Wei

Zhu³

2022

Front. Environ. Sci.

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Corporate environmental responsibility (CER) has become a critical factor for measuring the competitiveness of firms in China, and environmental subsidies may be a catalyst for promoting firms’ CER. This study uses data from Chinese A-share listed firms during 2010–2020. Using the instrumental variable two-stage least squares (IV-2SLS) method, we found that environmental subsidies significantly improve corporate environmental performance but have no significant impact on the disclosure and governance of pollution emissions. We find that environmental subsidies are better for chemical and energy firms with high pollution levels, provide incentives for non-state-owned firms to improve CER and that their effect in western and eastern China is better than that in the central region. We also found that corporate social responsibility plays a moderating role in environmental subsidies that affect CER. Finally, this study finds that environmental subsidies may crowd out corporate investments to improve environmental performance. Based on the above results, we provide the corresponding policy suggestions.

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“…The mediating effect of government subsidization on innovative performance involves two stages: government funding for innovative performance and R&D input for innovative performance [37]. In the latter, R&D input can improve technological innovation, product R&D, and the capability of enterprises to assimilate and utilize advanced knowledge and technology, indirectly enhancing the technologically innovative ability of enterprises through knowledge spillover and other functions [38,39].…”

Section: The Intensity Of Randd Input Is An Intermediatory Between Go...mentioning

confidence: 99%

Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation

Chen

et al. 2022

Sustainability

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Energy efficiency and emissions reductions are effective initiatives to address climate change and energy security. China has increased government subsidies and intellectual property protection (IPP) intensity to promote technological innovation in the renewable energy sector. This paper selects samples of geothermal, wind, and solar energy companies and examines whether the two initiatives mentioned above can improve company innovation, and assesses their action pathways. The results reveal that: (i) government subsidies can directly facilitate renewable energy enterprises’ innovative performance, and research and development (R&D) input served as a medium; and (ii) the intensity of IPP moderation needed for geothermal and solar enterprises to utilize the government subsidy to enhance innovation. The government should consider the differences of different sub-sectors of renewable energy when increasing subsidies. Better laws and policies are needed to strengthen the protection of intellectual property rights and stimulate innovation in renewable energy enterprises.

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Do government subsidies improve innovation investment for new energy firms: A quasi-natural experiment of China's listed companies

Cited by 137 publications

References 40 publications

An Estimation of the Effect of Green Financial Policies and Constraints on Agriculture Investment: Evidences of Sustainable Development Achievement in Northwest China

An Estimation of the Effect of Green Financial Policies and Constraints on Agriculture Investment: Evidences of Sustainable Development Achievement in Northwest China

The impact of environmental subsidy on the performance of corporate environmental responsibility: Evidence from China

Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation

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