This study investigates the green economic benefits of digital transformation in reducing carbon emission intensity and improving energy efficiency (Emission Reduction and Efficiency Gains, ER&EG), in alignment with the philosophy of Chinese modernization. Using panel data from 30 Chinese provinces spanning 2011–2023, empirical tests are conducted through two-way fixed effects, mediation effect, and spatial Durbin models. The findings indicate that: ① Digital transformation reduces regional carbon emission intensity while simultaneously boosting energy efficiency, yielding a “dual dividend” of ER&EG. This conclusion remains valid after endogeneity treatment and robustness tests. ② The impact of digital transformation on ER&EG varies across geographic locations and development patterns. Southern regions exhibit a more pronounced ER effect, while northern regions show a stronger EG effect. Resource-based regions experience EG without ER. ③ Industrial structure upgrading serves only as an intermediary mechanism for the ER effect of digital transformation, whereas green innovation acts as the intermediary mechanism for both ER&EG. ④ Digital transformation not only improves local ER&EG but also generates positive spatial spillovers to neighboring regions. The study recommends continuing to advance digital transformation and intelligent upgrading while paying attention to inter-regional development disparities. This will drive the transformation and upgrading of traditional industries and enhance green innovation, forming a regional synergy for digital transformation to achieve the dual benefits of ER&EG for the whole society.
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