The distributional effects of inclusive energy-efficiency subsidies: An empirical study of multi-dimensional Matthew effects.

Energy-efficiency subsidies are inclusive policies designed to promote a green transition for consumers. However, the fairness of their subsidy distribution has received insufficient attention. This study uses China's 2024 Energy-Efficiency Subsidy (EES) policy for home appliances as a quasi-natural experiment. We analyze high-frequency panel data from the JD.com platform, covering 12,936 products and comprising 1,552,320 daily observations spanning 120 days. Employing a difference-in-differences approach, we empirically evaluate the distributional effects of EES across multiple dimensions. The findings revealed three key results. First, EES significantly boosted sales of energy-efficient appliances. However, best-selling products, dominant brands, and leading platforms captured a disproportionate share of the policy benefits. Second, at the regional level, the policy's impact was significantly stronger in developed regions compared to less developed ones. Third, regions with high energy consumption received a larger share of subsidies for energy-efficient products. This highlights the inherent trade-off between efficiency and equity goals. Based on these findings, we recommend specific policy design refinements aimed at mitigating the distributional inequalities that can arise during subsidy implementation.