About the Journal
In Memory of Professor Jerzy Radecki
Editorial Office
Editorial Board
Scope
Impact Factor
Indexed in...
Journal Impact Factor contributing items
Contact
Subscription
Current issue
Online first
Notes to Authors
Frequently Asked Questions
Editorial policies
PJOES Publication Policy Overview
PJOES Peer Review Policy
PJOES Research Ethics and Malpractice Policy
PJOES Plagiarism Policy
PJOES Conflict of Interest Policy
PJOES Open Access Policy
PJOES Instructions for Reviewers
Generative AI and AI-Assisted Technologies Policy
Archive
ORIGINAL RESEARCH
Government Subsidy and Enterprise Green
Innovation: Evidence from Chinese Enterprises
1
School of Economics and Management, Beijing Forestry University, Beijing, China
2
Department of Economics, Karakorum International University, Gilgit, Pakistan
3
Department of Economics, University of Religions and Denominations, Qom, Iran
Submission date: 2023-11-25
Final revision date: 2024-04-16
Acceptance date: 2024-05-13
Online publication date: 2024-09-02
Publication date: 2025-07-05
Corresponding author
Pol. J. Environ. Stud. 2025;34(5):5319-5336
KEYWORDS
TOPICS
ABSTRACT
Green innovation is significant in realizing enterprises’ green transformation and high-quality
economic development. Using the data of China’s Shanghai and Shenzhen A-share listed companies
from 2009 to 2019, this study divides enterprise green innovation into substantive and strategic
innovations and analyzes the impact of government subsidies on green innovation and the mediating
role of R&D investment. The research results show that: (1) Government subsidies promote enterprises’
substantive and strategic green innovation, with the impact on substantive innovation being more
significant. (2) Government subsidies can help stimulate enterprises to increase R&D investment,
promoting green innovation. R&D investment is an important intermediary between government
subsidies and enterprise green innovation. (3) R&D investment has a more significant mediating effect
on the green innovation of state-owned enterprises, large enterprises, non-polluting industries, and
enterprises in non-carbon emission trading pilot areas. Therefore, the government should formulate
differentiated subsidy policies according to enterprises’ internal and external conditions and improve
the carbon emission trading system. In contrast, enterprises should actively adapt to policy changes and
rationally use policy resources.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
REFERENCES (86)
1.
HANLON W.W. Coal smoke, city growth, and the costs of the industrial revolution. The Economic Journal. 130 (626), 462, 2020. https://doi.org/10.1093/ej/uez....
2.
TANG D.P., YANG Z.Z. Local environmental expenditures, fiscal environmental protection subsidies and green technology innovation of enterprises. Financial Research. 42 (01), 79, 2022.
3.
QI X.L., GUO P.Z., XIE W. The impact of government support on regional-innovation performance: a review and outlook. East China Economic Management. 34 (03), 44, 2020.
4.
LI X.A. Environmental regulation, government subsidies, and regional green technology innovation. The Economic Journal (London). 38 (03), 14, 2021.
5.
YAN X.C. The impact of government r&d subsidies on innovation performance: from the perspective of innovation capability. Journal of Tianjin University of Finance and Economics. 39 (01), 59, 2019.
6.
TIAN H., LIU S. The impact of government subsidies on green technology-innovation ability. Systems Engineering. 39 (02), 34, 2021.
7.
ZHAO Y.X., HOU H.W., MIAO X.L. Government environmental subsidies, institutional incentives and enterprise green innovation: an empirical analysis based on-propensity score matching method. Local Finance Research. 19 (01), 49, 2022.
8.
YE C.H. Financing constraints, government subsidies and green innovation of-enterprises. Statistics and Decision Making. 37 (21), 184, 2021.
9.
ZHANG H., LIU J.Y., HE Z.H. The impact of government subsidies on enterprise r&d investment: a threshold analysis based on the chinese industrial enterprise database. Economic Perspectives. 57 (12), 28, 2016.
10.
DIMOS C., PUGH G. The effectiveness of r&d subsidies: a meta-regression analysis of the evaluation literature. Research Policy. 45 (04), 797, 2016. https://doi.org/10.1016/j.resp....
11.
WANG Z.Q., WANG H., WANG Z.J. Corporate green development, government subsidies and r&d expenditures: also on the corporate ethical development hierarchy. Contemporary Finance & Economics. 42 (02), 75, 2021.
12.
TIAN H.N., LIU S.Q. Research on the impact of government subsidies on green r&d investment: an empirical examining based on china's pharmaceutical manufacturing enterprises. Journal of Science and Technology Management. 21 (06), 45, 2019.
13.
WU H., ZHNG J.X. The impact of government subsidies and reduction of taxes and fees on the efficiency of enterprises innovation: an analysis of the threshold effect based on the listed manufacturing enterprises. Contemporary Finance & Economics. 42 (03), 28, 2021.
14.
GAO X., HE Z.H., ZHANG F.Y. How to improve regionlevel green technology innovation by government subsidies and environmental regulations - a research on co-movement effects from configuration perspective. R&D Management. 34 (03), 162, 2022.
15.
MEULEMAN M., De MAESENEIRE W. Do r&d subsidies affect smes' access to external financing? Research Policy. 41 (03), 580, 2012. https://doi.org/10.1016/j.resp....
16.
LIU J.Y. Evaluation of the driving effect of government subsidies on enterprises' green innovation performance. Journal of Technical Economics & Management. 30 (01), 45, 2023.
17.
JIANG R.M., CHEN G.S. Government subsidies, corporate esg performance and green innovation. Resources & Industries. 24 (06), 90, 2022.
18.
LIU Y., XU H., WANG X. Government subsidy, asymmetric information and green innovation. Kybernetes. 51 (12), 3681, 2022. https://doi.org/10.1108/K-05-2....
19.
ZHANG W.Q., CHEN Y.K. Research on the impact of environmental regulation tools and r&d subsidies on green technology innovation. Ecological Economy. 38 (01), 36, 2022.
20.
GU F., JIANG M.T. Government subsidies and green technology innovation - based on heavy pollution industry data. Friends of Accounting. 39 (18), 73, 2022.
21.
STIGLITZ J.E. Markets, market failures, and development. The American Economic Review. 79 (2), 197, 1989. https://doi.org/10.3386/w2961.
22.
SUN H., WANG H. Government subsidies, r&d investment and enterprise-innovation performance: an empirical study based on high-tech enterprises on the gem. Science and Technology Management Research. 37 (12), 111, 2017.
23.
WANG W., ZHANG Z. The influence of innovation subsidy and failure compensation on the choice of green innovation strategy of enterprises. Soft Science. 33 (02), 86, 2019.
24.
MAO Q.L., XU J.Y. Government subsidies, heterogeneity and corporate risk-taking. China Economic Quarterly. 15 (04), 1533, 2016.
25.
SHI J.J., LI X.Y. Government subsidies and corporate innovation capability: a new empirical finding. Business and Management Journal. 43 (03), 113, 2021.
26.
ZHAG B.C., ZHAO S.K. Research on the impact of government subsidies on green innovation of enterprises - the moderating effect of political connection and environmental regulation. Science Research Management. 43 (11), 154, 2022.
27.
ZHANG Y., CHENG Y., YU M.G. Can government subsidy improve high-tech firms' independent innovation? Evidence from zhongguancun firm panel data. Journal of Financial Research. 61 (10), 123, 2018.
28.
LIU J.R., ZENG X.F., ZENG Q. Influence of environmental regulation and government innovation subsidy on enterprise green product innovation. Research on Economics and Management. 40 (06), 106, 2019.
29.
BUSOM I. An empirical evaluation of the effects of r&d subsidies. Economics of Innovation and New Technology. 9 (02), 111, 2000. https://doi.org/10.1080/104385....
30.
KAISER U. Private r&d and public r&d subsidies: microeconometric evidence for Denmark. Nationaløkonomisk Tidsskrift. 144 (01), 1, 2006.
31.
WANG H.P., ZHANG Y., TIAN M. Research on the threshold effect of government r&d subsidies, corporate charitable donation on green innovation. Soft Science, 36 (07), 1, 2022.
32.
YI J., MURPHREE M., MENG S., LI S. The more the merrier? Chinese government r&d subsidies, dependence, and firm innovation performance. Journal of Product Innovation Management. 38 (02), 289, 2021. https://doi.org/10.1111/jpim.1....
33.
LU C., CHENG H.F., CAI J.H. Evolutionary game analysis: impacts of government subsidies on manufacturers' green r&d under peer incentive mechanism. Chinese Journal of Management. 19 (01), 93, 2022.
34.
YANG Y., WEI J., LUO L.J. Who innovate from the government subsidies? The joint moderate effects of the ownership and the factor market distortions. Journal of Management World. 30 (01), 75, 2015.
35.
WANG Y.H. Government subsidies, r&d investment and enterprise innovation performance - a study based on ownership, enterprise experience and regional differences. Inquiry into Economic Issues. 33 (07), 138, 2015.
36.
SUN X.H., GUO X., WANG Y. Government subsidy, ownership, and firms' r&d decisions. Journal of Management Sciences in China. 20 (06), 18, 2017.
37.
TONG H., WU H.W. Government subsidy, enterprise scale and enterprise innovation performance. Journal of Changchun University of Science and Technology (Social Sciences Edition). 36 (01), 123, 2023.
38.
PLESS J. Are complementary policies substitutes? Evidence from r&d subsidies in the UK. Evidence from R&D Subsidies in the UK. 2022.
39.
LI S.Q., ZHU P.F., LIAO H. Can government r&d subsidies drive enterprise r&d investment - heterogeneity analysis from two perspectives based on-enterprise scale and attribute. Systems Engineering-Theory & Practice. 42 (06), 1591, 2022.
40.
LUO X.T. Research on r&d subsidies and technological innovation efficiency of high-tech enterprises - based on the threshold effect of firm size. Review of Investment Studies. 38 (10), 52, 2019.
41.
AFCHA S., LUCENA A. R&d subsidies and firm innovation: does human capital matter? Industry and Innovation. 29 (10), 1171, 2022. https://doi.org/10.1080/136627....
42.
PENG H.X., MAO X.S. Government subsidies for innovation, company executives background and r&d investment: evidence from the high-tech industry. Finance & Trade Economics. 3, 147, 2017.
43.
TANG D.Y., ZHANG Y. Do shareholders benefit from green bonds? Journal of Corporate Finance. 61, 101427, 2020. https://doi.org/10.1016/j.jcor....
44.
LI Q.Y., XIAO Z.H. Heterogeneous environmental regulation tools and green innovation incentives: evidence from green patents of listed companies. Economic Research Journal. 55 (09), 192, 2022.
45.
SONG D., ZHU W., DING H. Can firm digitalization promote green technological innovation? An examination based on listed companies in heavy pollution industries. Journal of Finance and Economics. 48 (04), 34, 2022.
46.
ZOU Z.Y., XIN P.Z., ZHAO Y.F., ZHU X.H. Research on the influence of executive green cognition and corporate green behavior on its green performance - based on data of shandong light industry enterprises. East China Economic Management. 33 (12), 35, 2019.
47.
XIONG G.Q., SHI D.Q., LI M.N. The effect of lowcarbon pilot cities on the green technology innovation of enterprises. Science Research Management. 41 (12), 93, 2020.
48.
HALL B.H., HARHOFF D. Recent research on the economics of patents. Annual Review of Economics. 4 (01), 541, 2012. https://doi.org/10.1146/annure....
49.
WANG X., WANG Y. Research on the green innovation promoted by green credit policies. Journal of Management World. 37 (06), 173, 2021.
50.
GUO J. The effects of environmental regulation on green technology innovation - evidence of the porter effect in china. Finance & Trade Economics. 40 (03), 147, 2019.
51.
FAN D., SUN X.T. Environmental regulation, green technological innovation and green economic growth. China Population, Resources and Environment. 30 (06), 105, 2020.
52.
TAO F., ZHAO J., ZHOU H. Does environmental regulation achieve "incremental quality improvement" of green technology innovation: evidence from environmental target responsibility system. China Economic Journal. 2, 136, 2021.
53.
LI Y., GAO D., WEI P. Dose the central environmental inspection induce green innovation in firms. Studies in Science of Science. 39 (08), 1504, 2021.
54.
ZHANG Y.M., XING C., ZHANG Y. The impact of media coverage on green technology innovation of high-polluting enterprises. Chinese Journal of Management. 18 (04), 557, 2021.
55.
GUAN Y.M., LU J.J. Research on the relationship between stakeholder pressure, corporate environmental ethics, and green innovation performance. Jiangsu Social Sciences. 40 (03), 67, 2019.
56.
HOU Y.H., LI S.S., HE M., RAO W.Z. Influence of market green pressure on the green innovation behavior of knowledge-based enterprises. China Population, Resources and Environment. 31 (01), 100, 2021.
57.
BOEING P., EBERLE J., HOWELL A. The impact of china's r&d subsidies on r&d investment, technological upgrading and economic growth. Technological Forecasting and Social Change. 174, 121212, 2022. https://doi.org/10.1016/j.tech....
58.
LI G.P., LI Y.G., QUAN J.M. Environmental regulation, r&d investment and enterprises' green technological innovation capability. Science of Science and Management of S. & T. 39 (11), 61, 2018.
59.
ZHANG Y.A., YAN J.X., HU P. Research on the dual effect mechanism of government subsidy on enterprise innovation performance: a case study of listed biopharmaceutical enterprises. Science and Technology Management Research. 40 (01), 32, 2020.
60.
XIONG A., XIA S., YE Z.P., CAO D., JING Y., LI H. Can innovation really bring economic growth? The role of social filter in China. Structural Change and Economic Dynamics. 53 (50), 2020. https://doi.org/10.1016/j.stru....
61.
WANG X.Z., ZOU H.H. Effect mechanism of industrial policies on innovation performance of wind power enterprises - considering time lag and regional innovation environment. R&D Management. 30 (02), 33, 2018.
62.
MEI B.Q., LUO J.Z. Financial subsidies, r&d investment and enterprise innovation performance: a model test of regulatory mediator effect under institutional differences. Economic Survey. 37 (01), 167, 2020.
63.
LIU F.Y., SHEN Y.F., HE L.Y. Influence of subsidy timing on new energy r&d and innovation and regional differences. China Population, Resources and Environment. 31 (01), 57, 2021.
64.
LI W.J., ZHENG M.N. Is it substantive innovation or strategic innovation - impact of macroeconomic policies on micro-enterprises' innovation. Economic Research Journal. 51 (04), 60, 2016.
65.
LIANG Y.Q., JIANG X.J., GAO Y.F. Analysis of the impact and effect of government subsidies on enterprise green innovation based on the perspective of enterprise innovation motivation. Sub National Fiscal Research. 18 (01), 38, 2022.
66.
AGHION P., VEUGELERS R., SERRE C. Cold start for the green innovation machine. Bruegel policy contribution. 2009.
67.
XIONG H., YANG Y., ZHOU J. The effect of government subsidies on the r&d investment of enterprises which are in different life-cycles stages. Science and Management of Technology. 37, 3, 2016.
68.
WANG X.Y., WANG Z.M. An empirical study of the influence of external financing on enterprise r&d investment: based on the system GMM estimation of dynamic panel. Science and Technology Management Research. 40 (05), 77, 2020.
69.
DONG Q., WANG W., XIE Z. The influence of r&d input impact on the region's innovation performance: a mediating perspective. Science & Technology Progress and Policy. 33 (41), 2016.
70.
ZULFIQAR F., THAPA G.B. Determinants and intensity of adoption of "better cotton" as an innovative cleaner production alternative. Journal of Cleaner Production. 172, 3468, 2018. https://doi.org/10.1016/j.jcle....
71.
FRITSCH M. The theory of economic development- an inquiry into profits, capital, credit, interest, and the business cycle. Taylor & Francis. 2017. https://doi.org/10.1080/003434....
72.
XIE X., HUO J., ZOU H. Green process innovation, green product innovation, and corporate financial performance: a content analysis method. Journal of Business Research. 101 (697), 2019. https://doi.org/10.1016/j.jbus....
73.
SOVACOOL B.K. Reviewing, reforming, and rethinking global energy subsidies: towards a political economy research agenda. Ecological Economics. 135 (150), 2017. https://doi.org/10.1016/j.ecol....
74.
WANG X., ZHU X. A study of green technology innovation and financing contracts arrangement in manufacturing industry. Studies in Science of Science. 37 (02), 351, 2019.
75.
QIAO F., WEN W., FENG X.Q. Can "national team" ownership promote corporate green innovation? The heterogeneity analysis of heavily-polluted industry. Science & Technology Progress and Policy. 39 (22), 92, 2022.
76.
GALBREATH J. Drivers of green innovations: the impact of export intensity, women leaders, and absorptive capacity. Journal of Business Ethics. 158 (47), 2019. https://doi.org/10.1007/s10551....
77.
ALBRIZIO S., KOZLUK T., ZIPPERER V. Environmental policies and productivity growth: evidence across industries and firms. Journal of Environmental Economics and Management. 81 (209), 2017. https://doi.org/10.1016/j.jeem....
78.
WU J., TIAN Z., LONG X., XIONG Q. The impact of government subsidies on corporate innovation in strategic emerging industries. Studies in Science of Science. 36 (01), 158, 2018.
79.
CHENG H., LIN L.M. The difference of technological innovation effect between the enterprises of different ownerships - an empirical evidence from cees. Science & Technology Progress and Policy. 35 (06), 77, 2018.
80.
JIN Z., SHANG Y., XU J. The impact of government subsidies on private r&d and firm performance: does ownership matter in china's manufacturing industry? Sustainability. 10 (07), 2205, 2018. https://doi.org/10.3390/su1007....
81.
CALEL R., DECHEZLEPRÊTRE A. Environmental policy and directed technological change: evidence from the european carbon market. Review of Economics and Statistics. 98 (01), 173, 2016. https://doi.org/10.1162/REST_a....
82.
ZHU J., FAN Y., DENG X., XUE L. Low-carbon innovation induced by emissions trading in china. Nature Communications. 10 (01), 4088, 2019. https://doi.org/10.1038/s41467... PMid:31501437 PMCid:PMC6733790.
83.
REN Y.Y., FU J.Y. Research on the effect of carbon emissions trading on emission reduction and green development. China Population, Resources and Environment. 29 (05), 11, 2019.
84.
XUE L., ZHANG X.L., HU X.N., LIU H.S. Spatial distribution of heterogeneous firms under the impact of carbon emissions trading market integration. China Population, Resources and Environment. 28 (08), 1, 2018.
85.
WANG W.J., XIE P.C., LI C.M., LUO Z.G., ZHAO D.Q. The key elements analysis from the mitigation effectiveness assessment of chinese pilots carbon emission trading system. China Population, Resources and Environment. 28 (04), 26, 2018.
86.
BABATUNDE K.A., SAID F.F., NOR N.G.M., BEGUM R.A., MAHMOUD M.A. Coherent or conflicting? Assessing natural gas subsidy and energy efficiency policy interactions amid co2 emissions reduction in Malaysia electricity sector. Journal of Cleaner Production. 279, 123374, 2021. https://doi.org/10.1016/j.jcle....
Share
RELATED ARTICLE
| eISSN: | 2083-5906 |
| ISSN: | 1230-1485 |
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
