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The Impacts of Fiscal Subsidies on the Carbon Emissions of Mining Enterprises: Evidence from China

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  • Wei Dai

    (School of Economics and Management, Hubei Polytechnic University, Huangshi 435003, China)

  • Xuefang Zhang

    (School of Economics and Management, Hubei Polytechnic University, Huangshi 435003, China)

  • Chaohui Xu

    (School of Economics and Management, Hubei University of Science and Technology, Xianning 437100, China)

Abstract

Lowering carbon output and reducing emissions have been worldwide concerns as global warming and environmental pollution worsen. Governments play a key role in driving corporate action related to carbon and emission reduction. In this paper, mining companies listed in China’s A-share market were taken as samples to analyze the impacts of fiscal subsidies on the carbon emissions of mining enterprises through empirical tests. These findings demonstrated that fiscal subsidies could substantially lower corporate carbon emissions by incentivizing and enhancing their green-technology innovation. Financing constraints provided no prominent mediator effects between fiscal subsidies and carbon emissions, and these subsidies failed to considerably relieve their financing constraints in order to restrain carbon emissions. These results indicate that government policies on fiscal subsidies could represent significant guidance for corporate low-carbon and environmental-protection efforts, thereby providing empirical evidence for governmental environmental-protection policies.

Suggested Citation

  • Wei Dai & Xuefang Zhang & Chaohui Xu, 2022. "The Impacts of Fiscal Subsidies on the Carbon Emissions of Mining Enterprises: Evidence from China," IJERPH, MDPI, vol. 19(23), pages 1-13, December.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:23:p:16256-:d:993547
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