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The effects of government subsidies on the economic profits of hydrogen energy enterprises – An analysis based on A-share listed enterprises in China

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  • Pan, Xianyou
  • Yuan, Ge
  • Wu, Xianhua
  • Xie, Pinjie

Abstract

The systematic development of the hydrogen energy industry is inseparable from government subsidies and collaboration among enterprises in the industrial chain. Unlike existing studies on the overall impact of government subsidies on enterprise economic profits, this study discusses the impact of research and development (R&D) and production subsidies on the economic profits of upstream and midstream enterprises in the hydrogen energy industry chain. The empirical results based on hydrogen-related A-share listed enterprises from 2011 to 2019 in China show that the government's R&D and production subsidies have effectively improved the economic benefits of hydrogen energy enterprises. In particular, government R&D subsidies significantly improve the economic profits of upstream enterprises, whereas production subsidies have insignificant effects. For midstream enterprises that produce hydrogen fuel cells, the economic effect of government production subsidies is more significant than that of R&D subsidies. The results of this study may provide references for optimizing the distribution of subsidies in the hydrogen energy industry chain and promoting the sound development of the hydrogen energy industry worldwide.

Suggested Citation

  • Pan, Xianyou & Yuan, Ge & Wu, Xianhua & Xie, Pinjie, 2023. "The effects of government subsidies on the economic profits of hydrogen energy enterprises – An analysis based on A-share listed enterprises in China," Renewable Energy, Elsevier, vol. 211(C), pages 445-451.
    • Handle: RePEc:eee:renene:v:211:y:2023:i:c:p:445-451
    DOI: 10.1016/j.renene.2023.04.093
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