The Impact of Fiscal Subsidies on New Energy Enterprises Sustainable Development Performance from the Climate Policy Uncertainty Perspective

The escalating energy crisis, intensified by climate challenges, has shifted attention toward developing new energy markets for sustainable production. The Chinese government supports new energy enterprises (NEEs) through direct and indirect fiscal measures, mainly subsidies and tax incentives. This study explores how fiscal subsidies affect the sustainable development of NEEs, considering the role of climate policy uncertainty (CPU). Our findings indicate that fiscal subsidies significantly hinder the sustainable development of NEEs, and CPU as a moderating role appears to partially mitigate these negative effects. Additionally, the impact is more pronounced in enterprises with political connections, strong corporate governance, and those located in the eastern region. Our findings suggest the irrationality and inefficiency of current fiscal allocations for new energy markets.