The Impact Of Government Monetary Subsidies On Corporate Green Innovation

Economic development that takes into account environmental protection has always been a hot topic in academic circles.Development that pollutes first and then treats later and development that stagnates the economy to protect the environment are not in line with the need for quality development.As the basic unit of the economic growth engine,enterprises engage in green innovation to get out of this development dilemma.However,unfavorable factors such as large investments in green innovation R&D,uncertain output results,and obvious externalities lead to the low willingness of enterprises to undertake green innovation.However,government subsidies can not only increase the income source of enterprises,share the innovation risk and improve the R&D investments,but also alleviate the information asymmetry,release positive signals,and enhance the financing ability of enterprises.Therefore,for the sake of achieving high-quality economic development,it is very practically meaningful for government authorities to adopt monetary subsidies to motivate enterprises to engage in green innovation.Firstly,based on sustainable development theory,innovation theory,and externality theory,the thesis analyzes the mechanism of government monetary subsidies in influencing corporate green innovation.Secondly,this thesis selects data from 210 listed enterprises in the heavily polluting industries from 2012-2019 as a sample and introduces a two-way firm-year fixed-effect model to test the impact of government monetary subsidies on green innovation.Thirdly,five methods of reducing sample data,replacing variable indicators,changing the type of fixed effects,using instrumental variables,and introducing the Tobit model are used for robustness testing,and heterogeneity analysis is carried out with respect to size,nature of equity,and years of listing.Finally,the impact mechanisms of the direct incentive effect represented by R&D investment and the indirect signaling effect represented by financing capacity are verified.According to the empirical results,five conclusions are made:(1)Government monetary subsidies play a significant positive role in promoting green innovation in heavily polluting companies;(2)Compared with small-scale enterprises,government monetary subsidies for large-scale enterprises can promote green innovation more significantly;(3)In non-stateowned enterprises,government monetary subsidies can promote green innovation output of enterprises,but the impact is not significant in state-owned enterprises;(4)Companies with longer listing periods have a more incentive effect on green innovation;(5)Government monetary subsidies promote green innovation by increasing R&D investment and enhancing corporate financing capacity.In view of the conclusions,the thesis presents the relevant suggestions for the government and enterprises: First,enterprises shall correct their positioning as subjects of green innovation,earnestly practice the path of green innovation and development,cultivate long-term development strategic vision,and dutifully assume the responsibility for environmental pollution control.Secondly,the government shall clarify the subject of its supervision and examination and the subject of management and coordination,reasonably optimize the investment structure,give financial support by differentiating in light of local conditions,and continuously promote the green innovation of enterprises.At the same time,we will increase the continuous supervision in the middle stage,and complete the punishment measures for the enterprises that do not meet the standards of pollution rectification and praise and reward for the enterprises with high green innovation level,so as to jointly promote the enterprises to carry out green innovation in the whole process from multiple angles.