Research On The Strategic Effects Of Green Subsidy Under The Multiple Oligopoly Market Structure

Since the last century,in order to promote economic recovery and rapid growth,governments in various countries have ignored the harmonious development of the human and nature,and the resulting environmental problems have attracted the close attention of international organizations and countries.With the aim of fulfilling the international and domestic responsibility of protecting the environment,governments have adopted various environmental policy tools one after another to complete the target of energy saving and environmental protection under the condition of ensuring economic growth.To ensure fair competition in international trade and prevent dumping in the field of trade,the WTO has imposed strict restrictions on relevant environmental policies.Firstly,the traditional "red subsidy" policy tools are strictly prohibited;And then the restrictions on "yellow subsidy" are strengthened.The policy of green subsidy based on environmental protection is widely adopted by governments to meet the principle of WTO exception.Therefore,exploring the strategic effects of green subsidy seems to be meaningful and worthwhile in theory and practice.In the theoretical model,this paper innovatively introduces the green subsidy factor in a multioligopoly and multi-stage game model,compares the differences in the effects of green subsidy policy under different regulatory standards and different market conditions,and analyzes the attribution of the strategy choice of the government and enterprises.Theoretical research shows that the government’s green subsidy strategy has negative environmental effects,positive export effects and welfare effect.In the empirical model,the article investigates the impact of government green subsidy policy on urban environmental quality,export trade and social welfare by using the panel data of 149 cities in China from 2008 to 2017 for the first time,and the accuracy of theoretical model inference is also verified.In addition,considering the actual differences in industrial advantages,economic and social development in different regions of China,this paper classifies the whole sample and compares and analyzes the strategic effects differences of green subsidy under different regional backgrounds,that is,to test the implementation effects of green subsidies in the eastern,central and western regions respectively.For improving the estimation efficiency,this paper chooses the systematic GMM model and uses the substitution variable method to test whether the empirical results are robust.On the whole,green subsidy under the multi-oligopoly market structure can raise domestic environmental standards,reduce the environmental pollution index,improve environmental quality in cities,and promote the growth of urban exports.It shows that green subsidy policy can not only protect environmental resources,but also effectively deal with green barriers.And on this basis,the overall welfare of the society will be improved.However,the sub-sample regression results indicate that the environmental effects of green subsidy are significantly positive in the eastern region;although it tends to be less polluted in the middle,the effect is not significant;And in the west,it will stimulate the increase of pollution index and damage environmental regulation.The export effects and welfare effects of green subsidy are consistent and the positive effect of strategy are obvious in the east and west,but the regression results are not effective in the middle part samples,which is inferred to be related to the local economic system and development conditions.In total,China’s green subsidy policy plays an important role in social sustainable development.And governments at different levels ought to strengthen its financial support for environmental protection so as to safeguard the green subsidy policy carried out effectively and efficiently.