Environmental subsidies and companies’ environmental investments

Bibliographic Data

ID13119313
AuthorsJianbo Song (0000-0002-5868-7269, Renmin University of China, corresponding author), Haiqing Zhang (0000-0002-4032-4080, Renmin University of China), Zihao Su (0000-0002-1722-2991, Harbin Institute of Technology)
Year2020
Volume9
Issue4
Pages477-496
Publication date2020-05-15
Open AccessNo
TypeARTICLE
VenueEconomic and Political Studies (JOURNAL)
Journal identifiersISSN: 2470-4024 • E-ISSN: 2095-4816
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/20954816.2020.1760764
OpenAlexW3025776555
LanguageEN
Citations received4
References cited31

Environmental subsidies are important means for the government to promote companies to fulfil environmental protection responsibilities. Employing a text analysis method, this study obtains the data on government subsidies for environmental protection of A-share listed companies in China from 2007 to 2016. Empirical estimates show that the subsidies received by companies promote their environmental inputs. Additionally, analyst tracking and internal control enhance the positive effect of subsidies on the companies’ environmental investments. The above results are still valid after testing the Heckman two-stage model and the Propensity-Score-Matching and Difference-in-Difference model. This paper provides evidential support for the effectiveness of government subsidies and explores feasible ways to improve the efficiency of government subsidies based on the corporate governance channels

Business · China · Control (management · Corporate governance · Economics · Environmental economics · Government (linguistics · Industrial organization · Market economy · Matching (statistics · Propensity score matching · Public economics · Subsidy · Energy, Environment, Economic Growth · Environmental Sustainability in Business · Sustainable Supply Chain Management · Finance

Tools

Open DOISci-Hub