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

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  • Duan, Yu
  • Xi, Bin
  • Xu, Xin
  • Xuan, Siyuan

Abstract

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.

Suggested Citation

  • Duan, Yu & Xi, Bin & Xu, Xin & Xuan, Siyuan, 2024. "The impact of government subsidies on green innovation performance in new energy enterprises: A digital transformation perspective," International Review of Economics & Finance, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:reveco:v:94:y:2024:i:c:s1059056024004064
    DOI: 10.1016/j.iref.2024.103414
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    6. Portillo-Tarragona, Pilar & Llera-Sastresa, Eva & Scarpellini, Sabina & Benito-Bentué, Darío, 2025. "A case study of financing zero-emission power-to-gas technologies in Spain," Utilities Policy, Elsevier, vol. 95(C).
    7. Lee, Chien-Chiang & Hussain, Jafar & Abass, Qasir, 2025. "An integrated analysis of AI-driven green financing, subsidies, and knowledge to enhance CO2 reduction efficiency," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 675-693.
    8. Gao, Yang & Liu, Siqiang & Yang, Lu, 2025. "Artificial intelligence and innovation capability: A dynamic capabilities perspective," International Review of Economics & Finance, Elsevier, vol. 98(C).
    9. Liu, Fengyun & Huang, Jingqian & Yan, Qu & Yao, Lu, 2025. "Does the timing of subsidized loans matter for clean energy technological innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 407-425.
    10. Wang, Chunyang, 2025. "Is environmental regulation an incentive or an obstacle to green innovation?," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 52-68.
    11. Wang, Jie & Li, Wanli, 2026. "State-owned capital participation and customer concentration in private firms: Evidence from China," Economic Modelling, Elsevier, vol. 155(C).
    12. Xie, Yongjing & Lin, Boqiang, 2026. "Driving urban sustainable development: The role of renewable energy technology innovation in enhancing urban environmental efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PA).
    13. Bian, Zhiqiang & Zhang, Caibin, 2025. "Do different decentralization reforms prohibit or inhibit Chinese corporate carbon emission intensities?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1176-1196.
    14. Zheng, Zhuoji & Li, Xueqin & Han, Xianfeng & Shi, Daqian & Liu, Juan, 2025. "Better green financial instrument: Government green fund and corporate new energy technology innovation," Energy Economics, Elsevier, vol. 143(C).
    15. Huiqiang Ni & Zhen Yang & Wenlong Liu & Jianxia Cui, 2025. "Pre-Tax Deduction Policy for Employee Education Expenses and Corporate Digital Transformation: Evidence From China," SAGE Open, , vol. 15(2), pages 21582440251, June.
    16. Ge, Tao & Hao, Zixuan & Dai, Dongyu, 2025. "Independent R&D or technology imports? The induced innovation effects of energy intensity constraints," Technology in Society, Elsevier, vol. 83(C).
    17. An, Jin & He, Guiqian & Ge, Shilong & Wu, Shanshan, 2025. "The impact of government green subsidies on corporate green innovation," Finance Research Letters, Elsevier, vol. 71(C).
    18. Zheng, Yaoqi, 2025. "Enterprise litigation risk, executive characteristics and corporate foreign investment," Finance Research Letters, Elsevier, vol. 86(PF).
    19. Hu, Yaoxing & Yang, Xinyao, 2025. "Institutional joint shareholding, digital transformation and corporate ESG performance," Finance Research Letters, Elsevier, vol. 74(C).
    20. Wang, Yining & Zhou, Ning & Gao, Jie & Jiang, Ping & Yan, Ximu & Zhang, Mi & Chen, Lusha, 2025. "Tax incentive policies, market competition, and corporate innovation," Finance Research Letters, Elsevier, vol. 85(PA).
    21. Sun, Yulong & Du, Ruoyun & Chen, Hongfei, 2025. "Energy transition and policy perception acuity: An analysis of 335 high-energy-consuming enterprises in China," Applied Energy, Elsevier, vol. 377(PD).
    22. Ma, Jie & Chen, Xudong & Feng, Tong & Xu, Bing & Lu, Hongyuan & Guo, Quan, 2026. "The synergistic effects of demand-pull and supply-push policies on firm’s green innovation: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 527-541.
    23. Liu, Xian & Han, Yirui, 2025. "The Impact of state-owned capital intervention on the innovation capability of private high-tech enterprises," Finance Research Letters, Elsevier, vol. 86(PA).
    24. Yin, Hong & Zhang, Lu & Cai, Chuangneng & Zhang, Zenglian & Zhu, Qihong, 2025. "Fiscal & tax incentives, ESG responsibility fulfillments, and corporate green innovation performance," International Review of Economics & Finance, Elsevier, vol. 98(C).

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