Government innovation subsidies, green technology innovation and carbon intensity of industrial firms.

Government innovation subsidies play an important role as a policy to incentivize green transformation of enterprises, but whether government innovation subsidies can reduce the carbon intensity of industrial enterprises is still unclear, the exploration of the impact pathway needs to be further developed. This study takes government innovation subsidies as the entry point. It takes Chinese industrial listed companies as the research object from 2007 to 2021, explores the internal mechanism of government innovation subsidies on carbon intensity of industrial enterprises, analyzes the heterogeneity of the impact of government innovation subsidies on the carbon intensity of government innovation subsidies, and finally compares the differences arising from the governance effects of the policies of government innovation subsidies and government non-innovation subsidies. The results of the study show that: 1. Government innovation subsidies are beneficial for improving the energy utilization efficiency of enterprises and significantly reducing carbon intensity, unit government innovation subsidies can reduce the carbon dioxide emissions of industrial enterprises by 11.069 tons per 10,000 yuan of output value; 2. Government innovation subsidies can effectively incentivize industrial enterprises to carry out green technological innovations, and improve the quantity and quality of green technological innovation; 3. Government innovation subsidies can reduce carbon intensity of industrial enterprises by incentivizing the green technological innovations of enterprises to "increase the quantity and improve the quality". In fact, carbon intensity of industrial enterprises could be significantly reduced by incentivizing green technological innovation. Heterogeneity analysis shows that the greater the pressure of environmental tax and the higher the degree of market competition, the stronger is the effect of government innovation subsidies in reducing carbon intensity. The inclusion of government non-innovation subsidies in the control study shows that government innovation subsidies with innovation orientation motivate industrial enterprises to reduce carbon emissions significantly more than those subsidies without innovation orientation. In conclusion, this study provides a practical reference for the promotion of green technological innovation in enterprises to "increase the quantity and improve the quality" and reduce carbon intensity, as well as a revelation for the adoption of differentiated policies for different enterprises.