Impact of government subsidies on the innovation performance of the photovoltaic industry: Based on the moderating effect of carbon trading prices

Currently, there is much concern about traditional energy transition owing to the exacerbation of various environmental issues. As a highly developed industry in terms of renewable energy, the photovoltaic (PV) in-dustry has played a significant part in achieving the goal of low carbon development. This study examines Chinese-listed PV enterprises from 2014 to 2020 to explore not only the impact of government subsidies on innovation performance but also the moderating effect of carbon trading prices. The results are as follows. First, government subsidies have a promoting effect on innovation performance and R&D input plays a mediating role on a continued basis. Second, this promoting effect is more pronounced in zones designated for carbon trading pilot. Finally, carbon trading prices exert a positive moderating effect between government subsidies and innovation performance. Therefore, while increasing government subsidies, the state should also create a carbon trading market with more realistic trading prices for PV enterprises and give full play to the price discovery process in the carbon market.