Effects Of Subsidies Research Articles

Research on the Impact of Fiscal Subsidies on High-Quality Development of New Energy Vehicle Companies Based on Threshold Effects

In recent years, China has made significant strides in developing the new energy vehicle industry, providing substantial financial support to this sector. The production and sales of new energy vehicles have experienced explosive growth, accompanied by notable improvements in technology and product quality. However, as the industry evolved, the effectiveness of financial subsidies in enhancing the production and technological capabilities of enterprises has gradually diminished. To foster the rapid development of new energy vehicle enterprises and facilitate the rational planning of relevant government financial subsidies, this study utilizes data from listed Chinese new energy vehicle companies spanning from 2017 to 2022 to investigate the intrinsic relationship between financial subsidies and the quality development of enterprises. The study reveals several key findings. First, when fiscal subsidies are maintained within a reasonable range, they significantly enhance the quality development of state-owned enterprises (SOEs). However, once this threshold is surpassed, further increases in fiscal subsidies do not promote quality development of enterprises, a phenomenon that does not apply to non-state enterprises. Second, the threshold effect of financial subsidies on quality development is particularly pronounced between newly listed companies and those listed for more than three years. Third, for SOEs, financial subsidies play a critical role in fostering high-quality development by boosting R&D investment; this relationship is not observed in non-SOEs. Consequently, this study advocates the establishment of differentiated financial support policies for the new energy vehicle industry to maximize their effectiveness.

“Carrot and Stick”: Do US Entity List Sanctions Increase the Effectiveness of Chinese Government Subsidy?

“Carrot and Stick”: Do US Entity List Sanctions Increase the Effectiveness of Chinese Government Subsidy?

Tax or subsidy? The impact assessment of environmental policies on carbon allocation and emissions abatement of prefabricated construction supply chain

The construction sector, as the prime culprit that aggravates greenhouse gas emissions, has initiated transitions in construction methods for emissions abatement. In such a context, prefabricated construction has been widely promoted in developing countries. This paper assesses the effects of three environmental policies: carbon tax, green subsidy, and unit subsidy on carbon allocation and emissions abatement of prefabricated construction supply chain (PCSC) consisting of a prefab manufacturer (PM) and a project developer (PD). In our game model, the PD determines a prefabricated ratio, the ratio of prefabs to the total construction components, and purchases prefabs from the PM for assembly construction, which enables fewer emissions than on-site construction. We find that the carbon tax has a compound pass-through effect in PCSC, which imposes a quasi-subsidy effect on the PD, allowing the PM to achieve a prefab premium and thus inducing more intense double marginalization than that under the green subsidy. The unit subsidy holds a cost-compensating effect, which mitigates double marginalization arising from the spill-over effect of the green subsidy. Nevertheless, both subsidies lead to identical carbon allocation and emissions abatement of PCSC. The carbon tax outperforms subsidy policies in reducing total emissions and emission intensity, and is superior in responsibility-benefit balance in PCSC. Our study offers insights into the government's choice of environmental policies and the sustainable production decisions of PCSC members while, theoretically, contributing to the sustainable supply chain theory by revealing the impacts of environmental policies on the supply chain for transitional green products, such as PCSC.

Vehicle or power grid? Subsidy policy performance evaluation of China's plug in hybrid electric vehicles promotion and power grid cleaning construction

China has implemented strong incentives to promote the market of plug-in hybrid electric vehicles (PHEVs). The increase of PHEV will lead to an increase in electricity consumption, and more power generation will also lead to more carbon dioxide emissions. Therefore, it is necessary to evaluate the environmental benefits of the subsidy policy. In this study, we calculated the CO2 emission reduction and the increase of grid power generation and the CO2 emission from the investment and construction of clean energy power generation facilities caused by the subsidy of PHEV from 2016 to 2020, and evaluated the effect of PHEV subsidy through the multi-period DID model. The results show that replacing ICEV with a PHEV will reduce CO2 emissions by 12.38 kg per 100 km. Under the existing grid structure and power generation conditions, the promotion of PHEV will have a positive impact on CO2 emissions, but the effect is short-lived. Without considering other costs, the investment in clean energy power generation facilities at this stage will achieve better CO2 emission reduction effect than the promotion of PHEV.

Исследование теоретико-методологических аспектов концептуальной и эмпирической взаимосвязи проинновационной макрофинансовой политики и долгосрочного экономического роста

This article presents the results of a study of individual theoretical, methodological and empirical aspects of the relationship between innovative macrofinancial policy and long-term economic growth. The research revealed that the scale of innovation largely depends on government subsidies and investment preferences. Improving the quality of innovation requires innovation in the relevant field and contributions to subsequent technological innovations. The quality of innovation depends more on another level of factors and the flow of information. Firms prefer to engage in high-quality innovation activities for the sake of market competition, and the factor of institutional conjuncture has less impact on the quality of innovation. Thus, the article explores the hypothesis that, all other things being equal, deviation from the GDP target weakens the innovative effect of government subsidies. The study was conducted based on the empirical experience of countries with fast-growing economies, in particular, such as China, India, etc. The results also show that asymmetric effects affect the number of innovations rather than their quality. The heterogeneity shows that R&D subsidies are more dependent on the deviation of the GDP target and reduce the effectiveness of corporate innovation compared to non-R&D subsidies. In addition, the asymmetric innovation effect of government subsidies is more noticeable in companies that are subject to less institutional control. Empirical results obtained as a result of econometric calculations and estimates allow us to take a fresh look at the innovative effect of government subsidies through the prism of deviations from the GDP target

Tax Subsidy Disclosure and Local Economic Effects

ABSTRACTWe examine if the effectiveness of business tax subsidies varies based on state disclosure laws. The prior accounting literature on government disclosure documents substantial variation in the quality of such disclosures, raising questions about their effectiveness for monitoring. State and local business subsidies for investment and employment have tripled in size over the past 30 years, but transparency problems inhibit clear assessments of whether subsidies achieve their intended outcomes. We examine both internal disclosure laws, which mandate subsidy reporting by the granting state agency to other state oversight agencies, and external disclosure laws, which mandate reporting to the public. We find positive effects of subsidies on local employment when subsidies are subject to internal disclosure laws; by implementing such regimes, governments could forego 1.2–1.7 subsequent subsidies per county, saving $419.0–$593.5 million in aggregate. In contrast, we observe little effect of external disclosure, which we show is due to governments either substituting to other types of incentives or posting stale information that impedes public monitoring. We contribute to the government disclosure literature by demonstrating the real employment effects of internal government disclosures, and we provide policy‐relevant evidence about the conditions under which external disclosure regimes facilitate public monitoring.

Research on the Dual Driving Effects of Intellectual Property Protection and Government Subsidies on Total Factor Productivity Growth

Research on the Dual Driving Effects of Intellectual Property Protection and Government Subsidies on Total Factor Productivity Growth

Government subsidy for infertility treatment: impact on quality of life for infertile women undergoing in vitro fertilization-embryo transfer

Infertility and the economic burden of treatment can impose considerable psychosocial stress with negative consequences for the quality of life for all involved. The objective of this study was to determine the effects of government subsidies for infertility treatment on the quality of life among infertile women undergoing in vitro fertilization-embryo transfer. Infertile women undergoing in intro fertilization-embryo transfer were recruited from the Assisted Reproductive Technology Center at National Cheng Kung University Hospital, Taiwan, between 2019 and 2022. This study examined the issue of fertility using the FertiQoL survey, which measures the quality of life among individuals facing the struggles associated with infertility. Generalized estimating equation analysis was used to examine the relationship between government subsidies and pregnancy outcomes and quality of life following infertility treatment. This study analyzed 497 infertile women with 727 embryo transfer cycles. The mean core domain and total FertiQoL scores of subsidy recipients were significantly higher (2.68 score increase, p=0.026 and 2.38 score increase, p=0.026, respectively) than those of women who did not receive a subsidy. We also observed a negative correlation between the provision of subsidies and the likelihood of clinical pregnancy (odds ratio=0.57, 95% confidence interval: [0.35, 0.93], p=0.03) and ongoing (odds ratio=0.56, 95% confidence interval: [0.33, 0.95], p=0.03). The government subsidy for infertility treatment was negatively correlated with clinical and live birth rates while positively correlated with quality of life.

The More the Better? Reconsidering the Welfare Effect of Crop Insurance Premium Subsidy

China has invested substantial financial subsidies to promote the development of crop insurance; however, the insurance demand among farmers remains notably low, resulting in significant welfare loss. Based on a field survey conducted in 2021 in seven major grain-producing counties in Jiangsu Province, this study analyses the relationship between premium subsidy rates and the welfare effects of subsidies through theoretical model derivation and explores the impact of farmer heterogeneity on the results. This study innovatively introduces a power law distribution model to elucidate the distributional characteristics of farmers’ crop insurance demand, demonstrates the significant limitations of the linear demand model in welfare research, and effectively analyzes the welfare effects of China’s current crop insurance premium subsidy policy. The results indicate that: (1) the actual crop insurance demand of farmers aligns more closely with a power law distribution, and its long-tailed characteristics refute the assumption of linear distribution; (2) there exists an inverted “U”-shaped relationship between the subsidy ratio and the welfare effect, and an excessively high subsidy ratio produces substantial unnecessary losses; (3) variations in welfare effects exist among farmers in different regions, risk attitudes, and cultivation scales, but the range of differences between groups is limited.

Government Subsidies and Business Resilience of Chinese Electric Vehicle Enterprises: The Roles of ESG and Technological Capability

In the context of increasing global macroeconomic policy uncertainty, the effectiveness of Chinese government subsidies in promoting the business resilience of electric vehicle (EV) enterprises and the sustainable development of the EV industry has attracted significant attention. This paper utilizes panel data from Chinese listed EV companies from 2013 to 2022 to examine the impact of government subsidies on the business resilience of these enterprises. It also analyzes the moderating roles of corporate ESG (Environmental, Social, and Governance) performance and technological capability. This study finds that government subsidies significantly enhance business resilience, particularly for companies with a high ESG performance and a strong technological capability, which can better leverage these subsidies to further enhance their resilience amidst market fluctuations and uncertainties. Moreover, as an external support measure, government subsidies complement internal corporate factors like ESG performance and technological capability, promoting the sustainable development of the industry. Policymakers should consider corporate ESG performance and technological capability when designing subsidy programs to maximize their effectiveness.

The Effects of Subsidies for Healthy Foods on Food Purchasing Behaviors, Consumption Patterns, and Obesity/Overweight: A Systematic Review.

Taxing unhealthy foods and drinks is an essential measure against the double burden of malnutrition that affects every nation worldwide. In turn, subsidizing the consumption of healthy foods can also be a critical measure for changing the population's behavior and improving health indicators. A systematic review was conducted of food subsidies and their potential impact on food purchases, consumption, overweight/obesity, and changes in body mass index (BMI). The PubMed, Embase, LILAC, Scientific Electronic Library Online, and Google Scholar databases were searched to identify studies investigating the effects of subsidies on the amount of food purchased, food consumption, caloric intake, nutrient intake, and their impact on overweight, obesity, and BMI changes. The review followed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses checklist. Two investigators independently performed data screening, extraction, and quality assessment. Of the 6135 studies screened, 149 were read in full and 18 were included in this systematic review. Most studies investigated the effects of subsidy scenarios on food purchases and observed increases in fruit and vegetable (F&V) purchases when these were subsidized. In randomized controlled studies, subsidized healthy foods were purchased more often. However, when the subsidy was suspended, F&V consumption decreased. Although quasi-experimental studies have demonstrated increased F&V consumption due to subsidies, some studies showed increased saturated fat and sodium intake. Only 2 studies evaluated the relationship between subsidies and obesity, yielding conflicting results. Although the subsidies appear to encourage purchase and consumption of healthier foods, enhancing the quality and diversity of dietary choices, the removal of subsidies can lead to a decline in the consumption of healthier foods. Additionally, their impact on obesity and BMI remains uncertain and requires further research. PROSPERO registration by the number CRD42023442122.

Digitization and Green Technology Innovation of Chinese Firms Under Government Subsidy Policies

In the context of the digital economy, digital technology is an important driving force to promote green development and achieve the “dual-carbon goal”. Taking 1746 Shanghai and Shenzhen A-share enterprises from 2015 to 2022 as research objects, we empirically examine the relationship between government subsidies, digital transformation, and corporate green technology innovation. The study shows that (1) there is an inverted “U”-shaped relationship between government subsidies and corporate green technological innovation, while digital transformation plays a mediating role, and there is a difference between the quality and quantity of digital transformation in promoting green technological innovation. (2) Through the analysis of the moderating effect, it is found that market concentration has an obvious inhibitory effect between enterprise digital transformation and green technology innovation. (3) The study, by classifying the nature of enterprises, shows that the promotion effect of digital transformation on green technology innovation is weaker under heavily polluted enterprises than under non-heavily polluted enterprises, but the promotion interval of the relationship between government subsidies and green technology innovation is larger. Therefore, enterprises should make full use of digital technology to inject new impetus into their innovation activities, and the government should fully consider the appropriate space for enterprises to receive subsidies, make reasonable use of the incentive effect of government subsidies, and smooth the information docking channels for government and enterprise subsidies.

Can digital technology adoption promote environmental innovation in small and medium-sized enterprises (SMEs)? Evidence from China

Despite the widespread acknowledgment in both industry and academia of the substantial potential of digital technology for fostering innovation and sustainable development, there remains uncertainty surrounding whether integrating these technologies can improve environmental innovation in small and medium-sized enterprises (SMEs) due to the liability of smallness. This paper utilizes a panel dataset comprising 1036 Chinese manufacturing SMEs listed between 2011 and 2020 to investigate the influence of different digital technology adoption strategies—specifically, digital technology adoption breadth (DTAB) and digital technology adoption depth (DTAD)—on SMEs' environmental innovation. Additionally, we examine the moderating effects of government subsidies and industrial agglomeration on these relationships. The results reveal that (1) DTAB has a negative effect on SMEs' environmental innovation; (2) DTAD positively affects SMEs' environmental innovation; and (3) both government R&D subsidies and environmental subsidies can positively moderate the relationships among DTAB, DTAD, and environmental innovation within SMEs. These findings are extended and upheld after undergoing a series of further analyses, endogeneity analyses, and robustness tests. Our research suggests that SMEs are not as suited to the broad adoption of digital technologies as large firms; instead, they should focus on the deep application of specific digital technologies to promote environmental innovation.

Unveiling the Welfare Puzzle: Exploring Fertilizer Subsidy Effects on Farmer's Earnings in Indonesia

This study investigates the unresolved issue of how fertilizer subsidies affect paddy production and farmer income, a critical aspect of Indonesia's agricultural policy that has not been fully understood. By analyzing panel data from 33 provinces between 2019 and 2022 using the Generalized Least Squares (GLS) method, the research explores both income dynamics and productivity. Results reveal that NPK and SP36 fertilizers boost paddy yields by 0.198% and 0.155%, respectively, while UREA and ZA have no significant impact on production. Additionally, rising wages reduce production by 1.343% but increase farmer income by 0.332%. These findings highlight the complexity of balancing productivity with farmer welfare, suggesting that while fertilizer subsidies can enhance yields, they are not a universal solution. Policymakers must consider multifaceted approaches that address both productivity and sustainable income growth to ensure long-term welfare improvements for Indonesian farmers.

Impact of Grain Subsidy Policy on Agricultural Ecological Efficiency: Evidence from Pakistan

The complex relationship between grain subsidy programs and agricultural ecological efficiency in Pakistan is becoming increasingly important in sustainable agriculture and environmental preservation. This study uses a quasi-experimental methodology. SPSS software was used to conduct the statistical analysis. Descriptive statistics were initially calculated for each variable. This study analyses grain subsidy policies using modern literature and empirical data, acknowledging government interventions' crucial significance in agricultural practices in Pakistan. The results show that, firstly, grain subsidy a siginfance positive relationship with ecological efficiency. Secondly the nagtive grain subsidy effect on soil health and soil pH(Avg.change). One consequence of such projects is boosting food production and supporting farmers economicallyThe study recommends legislative changes that balance agricultural productivity and environmental protection. These include promoting sustainable farming, reforming subsidy programs to encourage ecological practices, and incorporating environmental factors into agricultural legislation.

A sustainable semiconductor supply chain under regulation

Modern life would not exist without semiconductors as all electronic components used in computers, telecommunications, health care, transportation, and energy systems are equipped with chips. To examine both backward and forward activities in semiconductor industry, this paper formulates the industry as a closed-loop supply chain. It articulates how old semiconductors are processed and recycled to manufacture new silicon and chips, and examines the impact of a commonly applied subsidy scheme on the performance of semiconductor firms which operate in upstream and downstream layers of the industry. Specifically, the proposed semiconductor supply chain involves (i) a return function sensitive to monetary incentives; (ii) a subsidy legislation rewarding end-users for recycling; (iii) upstream industry where silicon is produced using virgin and scrap materials; (iv) downstream industry in which semiconductor manufacturers (such as TSMC, Samsung, Intel) buy silicon and other materials, hire workers, and then produce and sell chips. We characterize Stackelberg equilibrium silicon and semiconductor prices and outputs and calibrate model parameters using actual data to quantify the effects of subsidy and collection channels on silicon and semiconductor firms’ performance. We find that the subsidy scheme neither distorts firms’ strategies nor causes any inefficiency for the semiconductor industry. It stimulates circular economy activities and provides economic and environmental benefits.

Effect of detrital subsidy on the Collembola community structure in winter wheat agroecosystems

Mulch is widely used for improving soil quality and maintaining crop productivity. The effects of mulch use in agroecosystems can be assessed by the state of the soil biota. Springtails (Collembola) are a representative group of soil animals in agroecosystems that survive well under agricultural field conditions. We assessed the effect of adding a detrital subsidy with different carbon to nitrogen ratio (C:N) on springtails in a 4-year series of field experiments in winter wheat agroecosystems located in two agroecological zones (broad-leaved forest and steppe). The mulch effect depended on weather conditions. In dry years, the addition of mulch led to an increase in the proportion of epedaphic (upper-litter dwellers) springtails in the broad-leaved forest zone and to an increase in the proportion of atmobiotic forms (mostly inhabiting macrophytes) in the steppe zone. These changes begin to manifest approximately 1.5 months after the detrital subsidy addition. In general, mulch application had a positive and stabilizing effect on the springtail community structure in winter wheat agroecosystems, regardless of the agroecological zone. Our study showed that the addition of detrital subsidy helps to increase the abundance and stabilize the diversity of the springtail community. Changes observed in the structure of the Collembola community can be an indicator of improved soil health, and springtails can be used in assessing the effectiveness of agricultural practices.

Biomass supply chain coordination considering government subsidies and corporate social responsibility

PurposeThe purpose of this paper is to investigate the impact of various decision-making approaches and government subsidies on supply chain performance, aiming to enhance the profits of disposal firms and retailers as well as to improve social welfare.Design/methodology/approachIn this paper, a two-echelon biomass supply chain composed of a disposal firm and a retailer is developed. Firstly, considering the effects of government subsidies, we analyze biofuels prices, corporate social responsibility levels, social welfare and supply chain profitability under centralized and decentralized decision-making scenarios, respectively. Furthermore, we assess how subsidies influence pricing, market participation, profitability and social welfare. Secondly, we propose a revenue sharing–cost sharing contract to enhance the profits of the disposal firm and retailer. Thirdly, we extend the supply chain to a disposal firm and two retailers and explore the impact of competition intensity on corporate decision-making behavior. Finally, numerical analysis is conducted by taking one biomass energy firm as an example to support the results.FindingsOur research finds that (1) Equilibrium strategies under the centralized decision-making scenario are greater than those under the decentralized decision-making scenario. Centralized decision-making can increase market demand and consumer surplus. (2) Government subsidies can promote corporate social responsibility levels, despite causing a slight increase in retail price for biofuels. When market competition intensifies, companies usually reduce their investment in CSR, and this trend is particularly pronounced in the absence of subsidies. (3) In both the decentralized and the centralized decision-making scenarios, increasing conversion rates and the CSR coefficient can significantly increase the overall profitability and social welfare.Research limitations/implicationsA three-echelon biomass supply chain involving collection station, disposal firm and retailer can be studied in the future.Originality/valueBy examining the effects of subsidies on CSR engagement and market outcomes, our study contributes valuable insights into policy design for promoting sustainable practices in biomass industries.

Functional effects of subsidies and stressors on benthic microbial communities along freshwater to marine gradients.

Leaf litter in coastal wetlands lays the foundation for carbon storage, and the creation of coastal wetland soils. As climate change alters the biogeochemical conditions and macrophyte composition of coastal wetlands, a better understanding of the interactions between microbial communities, changing chemistry, and leaf litter is required to understand the dynamics of coastal litter breakdown in changing wetlands. Coastal wetlands are dynamic systems with shifting biogeochemical conditions, with both tidal and seasonal redox fluctuations, and marine subsidies to inland habitats. Here, we investigated gene expression associated with various microbial redox pathways to understand how changing conditions are affecting the benthic microbial communities responsible for litter breakdown in coastal wetlands. We performed a reciprocal transplant of leaf litter from four distinct plant species along freshwater-to-marine gradients in the Florida Coastal Everglades, tracking changes in environmental and litter biogeochemistry, as well as benthic microbial gene expression associated with varying redox conditions, carbon degradation, and phosphorus acquisition. Early litter breakdown varied primarily by species, with highest breakdown in coastal species, regardless of the site they were at during breakdown, while microbial gene expression showed a strong seasonal relationship between sulfate cycling and salinity, and was not correlated with breakdown rates. The effect of salinity is likely a combination of direct effects, and indirect effects from associated marine subsidies. We found a positive correlation between sulfate uptake and salinity during January with higher freshwater inputs to coastal areas. However, we found a peak of dissimilatory sulfate reduction at intermediate salinity during April when freshwater inputs to coastal sites are lower. The combination of these two results suggests that sulfate acquisition is limiting to microbes when freshwater inputs are high, but that when marine influence increases and sulfate becomes more available, dissimilatory sulfate reduction becomes a key microbial process. As marine influence in coastal wetlands increases with climate change, our study suggests that sulfate dynamics will become increasingly important to microbial communities colonizing decomposing leaf litter.

Government support for firm-level innovation in less innovation-intense regions

ABSTRACT Regional innovation intensity is a crucial external factor that influences firm-level innovation outcomes. Firms located in less innovation-intense regions typically under-perform equivalent firms in more innovation-intense regions. Research to-date suggests that the effectiveness of government support for firm-level innovation varies markedly, depending on a firms’ location. However, almost no evidence exists on the effectiveness of government innovation support, in the specific case of firms located in less innovation-intense regions. To fill this gap in the literature, this paper addresses the following research question: What impact does government innovation support have on firm-level innovation in less innovation-intense regions? The analysis draws on the World Bank’s 2010 Business Environment and Enterprise Performance Survey, for five South American countries. Results show that subsidised firms, located in less innovation-intense regions, significantly underperform matched-unsubsidised firms in higher innovation-intensity regions. This result suggests that regional innovation-intensity is a crucial factor in determining the effectiveness of government innovation subsidies.