Government Subsidies and the Competitiveness of Energy Storage Enterprises: The Moderating Effect of Electricity Price

Compared with single indicators such as total factor productivity and financial performance, enterprise competitiveness represents the pivotal factor for energy storage enterprises (ESEs) to survive, develop and maintain a leading position in the market. Government subsidies are crucial for guiding the development of the energy storage industry. As countries globally increase their financial backing for ESEs, efficiently utilizing these subsidies has become a major focus. In this study, we examine the impact and mechanisms of government subsidies on the competitiveness of ESEs, using panel data from 248 listed ESEs in China between 2014 and 2023. Employing a range of analytical methods, including two-way fixed effects regression, instrumental variable estimation, and propensity score matching (PSM) tests, the findings demonstrate that government subsidies significantly enhance the competitiveness of ESEs, particularly for non-state-owned ESEs, energy storage system integration enterprises, and ESEs in resource-rich provinces. Further analysis indicates that research and development (R&D) expenditure and financial constraints act as key channels through which subsidies influence competitiveness. Furthermore, electricity prices exert a positive effect on the competitiveness of ESEs, with government subsidies and electricity prices exhibiting a significant substitution relationship in this regard. These findings offer valuable insights for exploring the role of government subsidies in advancing the sustainable development of the energy storage industry and supporting the transition towards achieving dual-carbon goals, while also providing important references for the development of the energy storage industry in other emerging economies.