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Does ownership matter in driving green subsidies effects? A quasi natural experiment in China

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  • Deng, Kebin
  • Ding, Zhong
  • Ren, Liuyang
  • Xiang, Ziyun

Abstract

Using the green-performance-evaluation policy boosting green subsidies for heavy polluting enterprises as a quasi-natural experiment, we employ the difference-in-differences (DID) method to confirm the substantial ownership impact on the relation between green subsidies and corporate environmental investment. Our findings indicate that state-owned involved enterprises significantly increase their environmental investment following the receipt of green subsidies, whereas non-state-owned involved enterprises temporarily reduce their environmental investment after receiving green subsidies. Mechanism analysis reveals that these differences stem from the inherent alignment between the objectives of state-owned enterprises and the government.

Suggested Citation

  • Deng, Kebin & Ding, Zhong & Ren, Liuyang & Xiang, Ziyun, 2025. "Does ownership matter in driving green subsidies effects? A quasi natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1079-1104.
    • Handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:1079-1104
    DOI: 10.1016/j.eap.2025.01.015
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