Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China

The construction industry is a major energy consumer and carbon emitter, and identifying the key drivers for its green transition has attracted increasing attention. Although government subsidies are one of the most effective and direct ways to induce a green transition, few academics have examined...

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Hauptverfasser: Feifei Zhang, Bingquan Liu, Guixin An
Format: Artikel
Sprache:English
Veröffentlicht: MDPI AG 2024-04-01
Schriftenreihe:Buildings
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Online Zugang:https://www.mdpi.com/2075-5309/14/5/1261
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author Feifei Zhang
Bingquan Liu
Guixin An
author_facet Feifei Zhang
Bingquan Liu
Guixin An
author_sort Feifei Zhang
collection DOAJ
description The construction industry is a major energy consumer and carbon emitter, and identifying the key drivers for its green transition has attracted increasing attention. Although government subsidies are one of the most effective and direct ways to induce a green transition, few academics have examined their effects at a micro level. Therefore, this study used the Chinese construction industry as an example to study the influence of subsidies on its green transition. Given the ambiguity of the green transition concept, this study employed the number of green patents and Environmental, Social, and Governance (ESG) ratings to represent the narrow sense and the wide sense of green transition, respectively. According to the empirical findings, subsidies can successfully induce green technology innovation and thus facilitate a green transition. The results of heterogeneity analysis show that government subsidies have a significant incentive-based effect solely on state-owned firms, but an insufficient effect on private and other enterprises. Furthermore, while government subsidies have little effect on ESG ratings, they can promote green transition of enterprises by increasing ESG ratings. The government should increase the types of subsidy packages available to enterprises, while attaching more importance to social responsibility.
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spelling doaj.art-2507b6e4db5a4b51a8237a782e124c7a2024-05-24T13:12:50ZengMDPI AGBuildings2075-53092024-04-01145126110.3390/buildings14051261Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in ChinaFeifei Zhang0Bingquan Liu1Guixin An2School of Management Engineering, Qingdao University of Technology, Qingdao 266520, ChinaSchool of Economics and Management, China University of Petroleum, Qingdao 266580, ChinaSchool of Economics and Management, China University of Petroleum, Qingdao 266580, ChinaThe construction industry is a major energy consumer and carbon emitter, and identifying the key drivers for its green transition has attracted increasing attention. Although government subsidies are one of the most effective and direct ways to induce a green transition, few academics have examined their effects at a micro level. Therefore, this study used the Chinese construction industry as an example to study the influence of subsidies on its green transition. Given the ambiguity of the green transition concept, this study employed the number of green patents and Environmental, Social, and Governance (ESG) ratings to represent the narrow sense and the wide sense of green transition, respectively. According to the empirical findings, subsidies can successfully induce green technology innovation and thus facilitate a green transition. The results of heterogeneity analysis show that government subsidies have a significant incentive-based effect solely on state-owned firms, but an insufficient effect on private and other enterprises. Furthermore, while government subsidies have little effect on ESG ratings, they can promote green transition of enterprises by increasing ESG ratings. The government should increase the types of subsidy packages available to enterprises, while attaching more importance to social responsibility.https://www.mdpi.com/2075-5309/14/5/1261construction industrygovernment subsidiesgreen transitionESG
spellingShingle Feifei Zhang
Bingquan Liu
Guixin An
Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
Buildings
construction industry
government subsidies
green transition
ESG
title Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
title_full Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
title_fullStr Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
title_full_unstemmed Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
title_short Do Government Subsidies Induce Green Transition of Construction Industry? Evidence from Listed Firms in China
title_sort do government subsidies induce green transition of construction industry evidence from listed firms in china
topic construction industry
government subsidies
green transition
ESG
url https://www.mdpi.com/2075-5309/14/5/1261
work_keys_str_mv AT feifeizhang dogovernmentsubsidiesinducegreentransitionofconstructionindustryevidencefromlistedfirmsinchina
AT bingquanliu dogovernmentsubsidiesinducegreentransitionofconstructionindustryevidencefromlistedfirmsinchina
AT guixinan dogovernmentsubsidiesinducegreentransitionofconstructionindustryevidencefromlistedfirmsinchina