Achieving collaborative pollutant and carbon emissions reduction through digital governance: Evidence from Chinese enterprises

Abstract

Under China's dual carbon goals, it is imperative for enterprises to effectively reduce carbon emissions while achieving pollutant reduction. This article explores the potential role of government-implemented digital governance in facilitating these objectives. Utilizing a quasi-natural experiment on digital governance, we established an analytical framework to thoroughly examine how digital governance can help Chinese enterprises realize synergistic effects in pollution control and carbon reduction. Our study reveals that digital governance significantly reduces enterprises' emissions of carbon dioxide and pollutants, with emission intensities of the carbon dioxide, air pollutant and water pollutant being decreased by approximately 6.9%, 7.3%, and 7.0%, respectively. These reductions are primarily driven by improvements in energy efficiency, the promotion of green innovation, digital transformation, and enhanced role of media. However, it is important to note that digital governance also negatively impacts overall corporate productivity and widens the digital divide between large and small-to-medium enterprises. The research results have practical significance for promoting the achievement of emission reduction goals and sustainable development for enterprises.