Against the backdrop of the “Dual Carbon” goals, corporate green innovation serves as the core driver for optimizing energy mix and advancing low-carbon transition. To explore the impact of government subsidies on firms’ green innovation performance and its boundary conditions, this paper takes A-share listed companies from 2007 to 2024 as research samples and adopts a two-way fixed-effects regression model. Digital transformation and environmental regulation are introduced as moderating variables to analyze how government subsidies affect corporate green innovation performance, followed by heterogeneous analyses from industrial characteristics and corporate ownership perspectives. The empirical results show that government subsidies exert a significantly positive promoting effect on firms’ green innovation performance. Firms with dual positions exhibit a higher coefficient of government subsidies. Based on the research conclusions, this paper puts forward targeted suggestions from the perspectives of governments formulating differentiated subsidy and regulatory policies. It provides references for improving corporate green innovation performance and facilitating the realization of the “Dual Carbon” goals. 

Wei Lijiao. Research on the Impact of Government Subsidies on Firms’ Green Innovation Performance. Academic Journal of Business & Management (2026), Vol. 8, Issue 9: 1-6. https://doi.org/10.25236/AJBM.2026.080901.

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