Digital transformation of enterprises promotes green technology innovation – The regulated mediation model

Abstract

This paper empirically investigates the impact of digital transformation on green technology innovation against the background of China's 14th Five-Year Plan and dual‑carbon targets in Shanghai and Shenzhen stock exchanges from 2008 to 2021. It is found that (1) enterprise digital transformation significantly promotes green technology innovation. (2) financing constraints play a partial mediating role in the effect of digital transformation on green technology innovation. (3) economic policy uncertainty can regulate the direct effect of digital transformation on green technological innovation, and can also regulate the first half of the path of the mediating effect, that is, the stronger the economic policy uncertainty faced by enterprises, the more significant the effect of digital transformation empowering green technology innovation, and the more obvious the effect on alleviating the financing constraints of enterprises. (4) Further research finds that digitalization empowers green technological innovation more significantly in state-owned enterprises, industries with a high degree of competition and enterprises in the eastern region. Government subsidies significantly outperform equity and debt financing in promoting green technology innovation. The impact of green technology innovation on carbon emissions is U-shaped. The above findings suggest that the government should provide incentives and increase number of subsidies to encourage enterprises to carry out digital transformation to promote green technology innovation, and also reveal that enterprises should actively respond to digital policies and focus on the integration of digitalization and greening.