The green innovation effect of digital transformation —evidence from the Chinese experience

Abstract

The global commitment to carbon neutrality signals the decline of the traditional development paradigm since the Industrial Revolution and the emergence of a new green development model. This study analyzes data from Chinese listed companies between 2011 and 2022 to explore the impact of digital transformation on corporate green innovation.Our findings reveal that higher levels of digital transformation significantly enhance corporate green innovation. This influence operates through mechanisms such as improved corporate information transparency, better internal control quality, and increased absorptive capacity. Notably, the green innovation benefits of digital transformation are more pronounced in state-owned enterprises and heavily polluting industries compared to non-state-owned and less polluting industries. Moreover, digital transformation leads to substantial environmental benefits, particularly by significantly reducing corporate carbon emissions over time. These conclusions provide empirical evidence for assessing the green innovation effects of digital transformation and for developing targeted digital empowerment policies to support corporate green and low-carbon transitions.