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<p>Carbon neutrality is critical to addressing the climate crisis. Using a unique dataset from Chinese market from 2018 to 2022, this study investigates the impact of government green subsidies on corporate carbon neutrality performance (CNP). The results indicate that green subsidies increase CNP by promoting green innovation, alleviating financing constraints, and attracting investor green attention. Additionally, green subsidies have a spillover effect, incentivizing the peers of subsidized firms to improve their CNP. This study provides additional evidence to assess the role of government power in promoting sustainability.</p>

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Do government green subsidies improve corporate carbon neutrality performance?

  • 期刊论文

  • 发表日期：

    2025年10月14日

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  • Zhuangzhuang Niu

摘要

Carbon neutrality is critical to addressing the climate crisis. Using a unique dataset from Chinese market from 2018 to 2022, this study investigates the impact of government green subsidies on corporate carbon neutrality performance (CNP). The results indicate that green subsidies increase CNP by promoting green innovation, alleviating financing constraints, and attracting investor green attention. Additionally, green subsidies have a spillover effect, incentivizing the peers of subsidized firms to improve their CNP. This study provides additional evidence to assess the role of government power in promoting sustainability.