The Impact of Air Pollution on Government Subsidies Obtained by Chinese Listed Companies

This paper using the air quality monitoring data released by China National Environmental Monitoring Center and the data of Lambda-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2016, establishes a linkage mechanism between the air pollution and listed companies' ability of obtaining government subsidies, and studies the impact of air pollution on government subsidies obtained by Chinese listed companies by fixed effect model and quantile regression model. The results of empirical analysis show that air pollution has a positive impact on the environmental subsidies obtained by companies, and the positive effect is marginal increment. Air pollution has a negative impact on the total government subsidies obtained by companies, and the negative impact is marginal decrement. The policy implication of this paper is that government can actively deal with the air pollution problem by adjusting the allocation of enterprise subsidies.