Government Subsidies Research Articles

The impact of government subsidies on green innovation performance in new energy enterprises: A digital transformation perspective

This paper selects data from A-share listed companies in China's new energy industry from 2007 to 2021 and constructs a fixed-effects negative binomial regression model to examine the impact of government subsidies on corporate green innovation performance and its mechanism. It further investigates the moderating effects of digital transformation and environmental regulation. The research finds that government subsidies significantly enhance corporate green innovation performance, and this conclusion remains valid after a series of robustness tests. Both corporate digital transformation and environmental regulation amplify the positive effect of government subsidies on green innovation performance. Meanwhile, the impact of government subsidies on green innovation performance varies with the nature of corporate ownership, industry characteristics, and company size. In non-state-owned, high-tech, and non-heavy pollution enterprises, the enhancing effect of government subsidies on green innovation performance is more pronounced. Mechanism tests show that government subsidies improve corporate innovation performance by enhancing technological integration capability, easing financing constraints, and increasing innovation input capacity. This paper provides new evidence on the factors influencing green innovation performance in new energy enterprises, offering significant insights into how government subsidies enhance green innovation performance in the new energy sector.

Greening through top management team's environmental attention?

Green innovation seamlessly merges the concepts of "innovation-driven" and "green development," constituting a potent mechanism for firms to promote sustainable development. This study employs micro-level data sourced from China's A-share listed companies, drawing on the attention-based view and upper echelons theory as theoretical foundations. Utilizing text analysis, we quantify top management team's (TMT) environmental attention, subsequently employing a two-way fixed-effects model to investigate the correlation between TMT's environmental attention and firm's green innovation. Proceeding judiciously in light of extant evidence, we tentatively derive the subsequent conclusions: (1) TMT's environmental attention can drive firm's green innovation. This viewpoint still holds after multiple robustness tests such as Heckman model and placebo test. (2) Executive environmental background positively moderates the influence of TMT's environmental attention on firm's green innovation. (3) Information asymmetry between the government and firms could potentially exist, as the effect of TMT's environmental attention on firm's green innovation is not significant for firms with more government subsidies. (4) CEO duality attenuates the favorable influence of TMT's environmental attention. This research unveils internal driving factors for firm's green innovation, thereby furnishing a reliable basis for firms to develop more effective sustainable development strategies.

Recycling price and service of a platform-based WEEE reverse supply chain under government subsidy

Recycling price and service of a platform-based WEEE reverse supply chain under government subsidy

Exploring the collaborative innovation operational model of government-industry-education synergy: a case study of BYD in China

ABSTRACT This paper investigates the collaborative innovation model employed by BYD Company, which integrates government, industry, and academia. Through a single-case analysis, it evaluates BYD's current innovation landscape and compares the dynamics of its cooperative efforts to elucidate its operational model. Key issues identified within BYD's ecosystem include a reliance on government subsidies, dispersion in industrial layout, and challenges in collaboration between enterprises and industries as well as university partnerships. The study attributes these issues to flaws in subsidy methods, problems with interest integration, and the weak market orientation of research outcomes. To address these challenges, the paper suggests that BYD should refine its subsidy mechanisms, concentrate on pivotal R&D areas, establish innovation alliances, and enhance its patent succession strategies.

Analysis of production decision-making evolution of steel enterprises under carbon border adjustment mechanism

This work explored the changes in production decision-making trends of Chinese steel enterprises under the influence of the carbon border adjustment mechanism. First, using evolutionary game theory, the interactive mechanism of complex production strategies among steel enterprises considering the carbon border adjustment mechanism was studied, including the impact of government subsidy coefficients, additional profits and carbon tax prices on enterprise decision-making. Second, the influence of key parameters on the dynamic evolutionary process was analysed. On this basis, the empirical simulation method was used to verify the game model and the main conclusions. Finally, the sensitivity analysis of the selected parameters was determined using Matlab software. The results showed that additional profits from green investment, government subsidy coefficients, input-output values and carbon tax prices had a higher impact on the evolution of enterprise production strategies. The results of this study provide a decision-making basis for the selection of future production methods for steel enterprises.

Research on the Influence of Government Subsidy on New Quality Productive Forces of Grain Enterprises - Empirical Evidence from Listed Companies in China

Research on the Influence of Government Subsidy on New Quality Productive Forces of Grain Enterprises - Empirical Evidence from Listed Companies in China

Factors Affecting Return on Assets in the Renewable Energy Sector during Supply Chain Disruptions

Return on assets (ROA) is a critical metric in assessing a company’s sustainability, especially in light of supply chain disruptions. Within the renewable energy sector, such disruptions often lead to a decline in ROA. Through the utilization of a within-between random model, this study uncovers the necessity for distinct strategies both prior to and during supply chain disruptions to maintain a high ROA. Pre-disruption, emphasis should be placed on securing additional funding for research and development (R&D) initiatives and expanding market reach. However, amid disruptions, sustaining a high ROA demands a strategic pivot. Specifically, renewable energy firms should scale back expansion efforts, redirect cash toward R&D, and exercise caution when venturing into new international markets, particularly in the absence of substantial government subsidies. Notably, this paper focuses solely on large-scale listed companies, overlooking potential innovative strategies employed by smaller-scale companies—an area ripe for future investigation. Despite this limitation, our findings offer valuable insights into enhancing sustainable performance within the renewable energy sector.

Recycling decision and corporate social responsibility implement for closed‐loop supply chain considering green design under EPR policy

AbstractThe extended producer responsibility (EPR) policy requires producers to focus on the green design of front‐end products and the recycling of end‐of‐life waste products at the same time and fulfill dual environmental responsibilities. Under this background, we study the recycling decision and corporate social responsibility (CSR) implementation for closed‐loop supply chains (CLSC) considering green design under EPR policy. We build game models of CLSC under six situations, and analyze the interaction between the manufacturer's green design behavior and the retailer's CSR behavior, along with their influence on recycling decisions and the operational performance of CLSC. We show that both the manufacturer's green design behavior and the retailer's CSR behavior are beneficial to improving social welfare and the other party's profits, but a higher level of green design is uneconomical for the manufacturer. Similarly, a higher CSR awareness is not conducive to retailer's profitability. We also find that under the influence of the government's “Tax‐Reduction‐Subsidy” policy, the selection of the optimal recycling channel is influenced by factors such as the difficulty of recycling waste products, government subsidies, and the profit of unit reprocesses from the perspective of maximizing supply chain member's profits.

Global solar photovoltaic industry network dynamics 2007–2023. Inter-organizational relationships as a source of competitive advantage?

Aiming a cleaner production in course of fighting the ongoing global warming, solar photovoltaic (PV) together with wind and hydro energy, indicate the most important industry segments in the transformation from fossils to renewable energy sources. During the last two decades, the solar PV industry experienced decisive changes of its global business network configurations where Chinese firms comparatively have gained competitive advantages. According to the business network theory, inter-organizational relationships indicate important vehicles for exchanging valuable resources such as advanced technology and privileged market knowledge aiming to gain leading industry positions.Based on a sample of globally leading solar PV manufacturers originated in Canada, China, Germany, South Korea, and the United States of America we conduct a detailed analysis and provide insights into solar PV industry upstream and downstream network dynamics examined for the period 2007–2023. We found that Chinese firms have focused more on upstream industry network relationships compared to their Western counterparts.Thus, we emphasize on the importance of building competitive regional solar PV industry networks instead of relying only on government subsidies which often come along with rather short-term effects.

The Importance of Tax Policies on Innovation - A Reassessment Using Chinese National Statistics Data

This study evaluates the effects of Chinese research and development (R&D) tax credit policies enforced around 2008 on corporate profit and patent activity. Compared with governmental direct tax subsidies, R&D tax credit more positively relates to corporate patent activity and profit. This paper separately examines samples of Chinese state-owned enterprises (SOE), privately-owned enterprises (POE), and foreign invested enterprises (FIE), and find that stimulating effect is the strongest for POEs. This study not only increases our understanding of China’s R&D policy, but also adds to the R&D tax credit literature and a stream of R&D effectiveness literature.

Accounting for income and expenditure on government quotas for greenhouse gas emissions in crop production

Subject. This article discusses the problems and possibilities of accounting for income and expenses associated with compliance with quotas for greenhouse emissions in relation to the activities of crop production enterprises. Objectives. The article aims to systematize and generalize knowledge about the problems and possibilities of accounting for income and expenses associated with compliance with quotas for greenhouse emissions at various enterprises, including those engaged in crop production. Methods. For the study, I used a dialectical approach, observation, analysis and synthesis, as well as elements of accounting methods. Results. The article proposes to take into account the income and expenses associated with compliance with emission quotas as part of ordinary activities, and it recommends calculating the cost of individual plant varieties taking into account the costs associated with quotas. It proposes an accounting system for recording a long-term government greenhouse emissions quota as a government subsidy (measured at fair value) in the ordinary course of business. Conclusions. Greenhouse emissions are inseparable from the standard activities of enterprises and are calculated on the basis of their volumes. The volume of greenhouse emissions should be reflected in the cost and profitability of sales of plant crops.

Analysis of Build Your Dream's Marketing Strategy

With the continuous progress of science, environmental pollution is becoming more and more serious. Environmental problems are paid more and more attention by people. Under the premise of actively advocating new energy vehicles and green development, BYD (BYD) new energy vehicles in the context of green development, people began to gradually pay attention to the energy issues of the automotive industry. At the same time, the goal is to replace the traditional energy vehicle industry. However, China also strongly supports the development of the new energy vehicle industry. China has ambitious goals for developing new energy vehicles. At present, the Chinese government's subsidies for new energy automobile enterprises are very large, so the subsidies for new energy automobile enterprises within 1, BYD enterprise performance is particularly outstanding, it can be said that China's new energy leader. The research goal of this paper is to analyze the marketing strategy of BYD Company and get the research results that BYD is a seed player in China, with many uninspiring potential. The increase in green travel also makes environmental protection more advanced.

Firm decisions and government subsidies in a supply chain with consumer surplus consideration

AbstractThis paper considers a supply chain that consists of a manufacturer and a retailer, who concern their respective profits as well as consumer welfare. Each firm's objective is modelled as a weighted sum of its profit and consumer surplus, with the weight on consumer surplus representing the concern level of the firm. We first examine a push supply chain where the manufacturer determines the wholesale price and the retailer determines the order quantity. We derive the optimal decisions and investigate the impact of the firms' consumer surplus consideration on the interactive decisions of the supply chain members and the overall performance of the supply chain. We show that a higher level of retailer's consumer concern does not necessarily lead to higher consumer surplus because her concern on consumers may be exploited by the manufacturer to improve his objective; and the manufacturer's concern on consumers may not benefit the retailer in terms of her profit, especially when the manufacturer's concern level is relatively low. Nevertheless, compared to the for‐profit supply chain, concern on consumer surplus could be beneficial to both firms' profits as well as consumer surplus, inducing a “win‐win‐win” situation under certain conditions. Furthermore, as a social planner, the government seeks to optimize social welfare by adopting subsidy policies, and we examine two types of intervention policies, that is, subsidizing firms and subsidizing consumers. We show that when subsidizing firms, government's quantity‐based subsidy is always more cost‐effective than sales‐based subsidy. As the firms' concern levels become higher or the demand uncertainty becomes lower, subsidizing consumers can achieve higher social welfare than subsidizing firms. Moreover, we examine the impact of the government's budget constraint and concern level on consumer surplus, and extend the analysis to a pull supply chain to show the robustness of the major findings.

Subsidizing residents or companies? An equilibrium-based analysis of subsidy strategies for EV charging facilities

This study examines the charging location choice behavior of residents in relation to employer-provided charging facilities and investigates the impact of different government subsidy strategies for charging facility construction on urban spatial structure and traffic-related air pollution. Using a monocentric two-zone city model, we analyze the residential distribution and travel mode choice of urban residents under various subsidy strategies from the perspective of social planners. The government can optimize urban resource allocation through transport infrastructure investments and implementation of emission taxes to maximize the so-called residents’ utility. We observe that despite the distorting effect of employer-provided charging facilities on travel mode choice, residents still experience an enhanced utility due to the positive environmental impact resulting from reduced pollution levels associated with electric vehicles (EVs) compared to gasoline vehicles (GVs). We provide numerical evidence to show that government subsidies, whether directed towards companies or residents, can effectively enhance the adoption of EVs and improve utility. In low-density cities, it is advisable for the government to encourage and subsidize residents in building charging facilities. Conversely, in high-density cities, prioritizing subsidies for companies would be more beneficial in improving utility and expanding the coverage of charging facilities. Furthermore, in cities where resident environmental awareness is relatively low, it is recommended that the government increase subsidies to promote EV adoption.

Meal-on-wheel Service Facility Location Strategy for Longhua District in Shenzhen based on GIS

With the development of Shenzhen, aging population with needs of Meal-on-Wheel (MOW) service is increasing as well, especially Longhua District. This paper analyses the characteristics of the aging population in Longhua District, and evaluates the accessibility and living quality of current meals service location by applying Geographic Information System (GIS). It finds that the meal service system struggles from low demands and quality, highly depends on government subsidies, lacks of participation from social enterprises, and diversity in service levels. Based on the analysis, proper location strategy is made, and proper MOW service locations are allocated by GIS to extend the coverage of MOW services and suggestions are made properly to promote the improvement of the quality of catering services.

Influences behind the development of South Korea’s shipbuilding industry from the 1960s to the 2000s

From the 1960s to the 2000s, the Republic of Korea (ROK) witnessed the rapid development of its shipbuilding industry, establishing itself as one of the world’s largest shipbuilders. This article seeks to answer the question of what drove the rapid development of South Korea’s shipbuilding industry. It accomplishes this by examining both classical sea power theory and the unique South Korean shipbuilding development model of the 1960s to the 2000s. Drawing from primary sources obtained from the ROK Presidential Archive and secondary sources, including newspapers and scholarly articles, this paper concludes that a combination of classic drivers of sea power development – including maritime commerce and threats – and the unique South Korean model, characterised by government subsidies and investments in both commercial shipbuilding and warship construction, contributed significantly to the development of South Korea’s shipbuilding industry. Finally, by learning from South Korea’s experience, developing and middle power countries looking to establish their shipbuilding industry should consider subsidising the industry in its early stages and contributing to a healthy ecosystem by investing in both commercial and warship construction.

Low-carbon city pilot policy and enterprise low-carbon innovation–A quasi-natural experiment from China

This study investigates whether the implementation of this policy fosters low-carbon innovation amongst enterprises and identifies the mechanisms underpinning its effects. Utilising low-carbon patent authorisation data from A-share listed companies in the Shanghai and Shenzhen stock markets between 2008 and 2019, this study employs a difference-in-differences model to conduct a multi-dimensional empirical examination of these questions. The findings indicate that the low-carbon city pilot policy can stimulate low-carbon innovation at the enterprise level to a certain extent, and this conclusion remains robust after a series of rigorous tests. The impact of low-carbon innovation is more pronounced in the authorisation of invention patents, with the pilot policy exerting a more significant influence on state-owned enterprises and enterprises with strong political affiliations. Further analysis reveals that government subsidies constitute the primary mechanism through which the pilot policy takes effect, effectively promoting low-carbon innovation in enterprises. This paper offers theoretical and empirical support for evaluating the low-carbon city pilot policy at the enterprise level and advances policy implications in three areas: further policy development, enterprise characteristics, and the application of various policy instruments.

A study on the evolutionary game theory of third-party governance of environmental pollution based on the quasi-co-owned relationship of pollution rights

The third-party governance of environmental pollution and the pollution rights trading system are two typical examples of modern environmental governance systems. In China, the quasi-co-owned relationship of pollution rights between pollution-discharging and pollution-control enterprises is the link through which to achieve synergy between the two factors. To explore how to achieve such synergy, first, the “principle of no-fault liability” is introduced, and the responsibilities of pollution-discharging enterprises and pollution-control enterprises are defined. Second, based on the quasi-co-owned relationship of pollution rights, a revenue-sharing mechanism for pollution rights trading is designed. Finally, a tripartite evolutionary game model consisting of pollution-discharging enterprises, pollution-control enterprises and local governments is constructed, and numerical simulation is performed. The results are as follows. 1) By setting a reasonable market trading price for pollution rights, a reward and punishment distribution coefficient, an improvement in reputation gains, and a saving in pollution rights indicators become conducive to the formation of cooperative relationships between pollution-discharging and pollution-control enterprises, for which the reasonable range of the reward and punishment distribution coefficient is (0.3, 0.4]. 2) Regardless of whether a government subsidy is provided, the optimal range of the revenue-sharing coefficient from pollution rights trading is [0.5, 0.6]. 3) When a government subsidy is withdrawn, increasing the market trading price and surplus indicators of pollution rights can promote the stable operation of the third-party governance model. 4) An increase in policy support and administrative accountability of higher levels of government and a reduction in supervision costs for local governments can help these parties effectively avoid addressing the absence of local government supervision. It is recommended that third-party governance enterprises participate in pollution rights trading to implement the main responsibilities of pollution-discharging and pollution-control enterprises and to set a reasonable revenue-sharing coefficient and reward and punishment distribution coefficient of pollution rights.

Can environmental investors stimulate corporate green technological innovation?—Evidence from China

ABSTRACT Using a sample of A-share listed enterprises in the Shanghai and Shenzhen Stock Exchanges, this study shows that environmental investors can effectively stimulate green technological innovation measured by green patents. The stimulating effect is substantially heterogeneous across different types of enterprises and innovations. The mechanism analysis reveals that environmental investors promote green innovation mainly by increasing internal environmental investment rather than by obtaining more government subsidies. This study provides rare micro-evidence of the important role of independent environmental investors in green innovation.

Mystery of special government subsidies: How does digital transformation promote enterprise innovation and development?

The digital transformation of enterprises has become an important driving force in promoting the high-quality development of China's economy and in-depth implementation of an innovation-driven development strategy. To this end, this study uses the panel data of China's A-share listed enterprises from 2010 to 2019 to explore the relationship among enterprise digital transformation, government subsidies, and innovation. Results indicated that digital transformation can significantly stimulate enterprise innovation. The impact mechanism test shows that the digital transformation of enterprises can increase their R&D expenditure and alleviate their financing constraints, thereby jointly promoting enterprise innovation in terms of innovation resources and financing resources. Furthermore, heterogeneity analysis indicates that digital transformation has a greater incentive effect on private enterprises, non-technology enterprises, service industries, and growth stage enterprises. By introducing special financial subsidies for digital transformation, special financial subsidies for digital transformation are shown to have a positive impact on the sensitivity of digital transformation and enterprise innovation. This effect is also played out through innovation spending and corporate finance, and the role of long-term financing is greater than that of short-term financing. Therefore, the role of digital transformation in promoting enterprise innovation must be actively played to achieve a high-quality development of the regional economy.