Government Environmental Subsidies and Corporate Employment: Evidence from China

Zongyu Xu () and Minrui Zhao ()
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Zongyu Xu: Shanghai University
Minrui Zhao: Shanghai University

A chapter in Proceedings of 2024 6th International Conference on Economic Management and Cultural Industry (ICEMCI 2024), 2025, pp 643-654 from Springer

Abstract: Abstract Globally, government environmental subsidies play a critical role in supporting corporate innovation and driving green transitions, yet their specific impact on corporate employment has not been thoroughly investigated. This paper empirically analyzes the dual effects of government environmental subsidies on corporate employment. On one hand, such subsidies can stimulate fixed asset investments, expand production capacity, ease financing constraints, and consequently create more job opportunities. On the other hand, subsidies may lead to short-term infrastructure upgrades and the installation of pollution control equipment, which fosters the growth of production and technical positions, as well as employment for individuals with undergraduate degrees or lower. This study contributes significantly to the literature on the relationship between government subsidies and employment, particularly in the context of global research on environmental regulations and corporate employment structures. Additionally, the findings offer valuable insights for policymakers worldwide, emphasizing the importance of balancing green economic promotion with employment security when designing subsidy policies to achieve sustainable development and inclusive employment growth.

Keywords: Government Environmental Subsidies; Corporate Employment; Fixed Asset Investment; Production Scale; Financing Constraints (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-642-0_68

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DOI: 10.2991/978-94-6463-642-0_68

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