Research on enterprise green technology innovation and government subsidy strategy under the background of carbon trading

• 1、Economics and Management School, Nanjing Tech University,Nanjing 211816

Abstract： With the idea of "double carbon" becoming more and more popular, how to achieve low-carbon production and regulate enterprise carbon emissions through the carbon trading market has become a new hot issue. In order to investigate and compare the impact of different scenarios on enterprises\' green innovation and government subsidy strategies after joining the carbon trading market, a game model between enterprises and the government is constructed from multiple system elements; And Vensim software is used for dynamic simulation. The results show that: ① Enterprises will accelerate green innovation after receiving incentives in order to obtain more green benefits. ② Government subsidies and the opening of the carbon trading market will often promote the green production of enterprises, but blind maintenance of subsidies will lead to a decline in government revenue. This means that enterprises should improve their green innovation capabilities and speed up their transformation to obtain more benefits. On the other hand, the government should encourage enterprises to green production through the carbon trading market and subsidy policies, but in the later stage, it is necessary to grasp the incentive strength to avoid the situation that the income cannot cover the expenses.

Keywords： System dynamics System simulation Carbon trading Green innovation