From "single-point benefit" to "chain-level Differentiation": A study on the supply chain spillover effect of...

It is of significant importance for advancing the energy transition to identify the government subsidies (GS) targets, supply chain spillover, and impact mechanisms. Based on data from Chinese A-share listed firms, this paper explored the impact of GS on total factor productivity (TFP) of upstream and downstream (U&D) firms and transmission pathways, and provided a comparative analysis of the efficiency differences across different industries. The study found that: (1) GS significantly enhances the TFP of the recipient firms, but it exhibits a negative spillover effect on U&D firms. This negative spillover effect is primarily transmitted through innovation input and capital allocation. (2) The positive effect on the recipient firms and the negative spillover effect on U&D firms are more pronounced in the new energy firm and its supply chain. (3) Innovation input is the primary mechanism driving the efficiency differences resulting from GS between new energy and non-new energy firms themselves, while the combined effects of innovation investment and capital allocation contribute to the efficiency differences on U&D firms in these two types of firms. The research conclusions can provide empirical support for the government to optimize subsidy policies and accelerate new energy system development.