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Does digital transformation make enterprises greener? Evidence from China

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  • Shen, Yongchang
  • Fu, Yunyun
  • Song, Malin

Abstract

The widespread introduction of new digital economic technologies in enterprises has reshaped their engagement in environmental protection, with significant implications for fulfilling their environmental responsibilities. This study focused on the relationship between digital transformation (DT) and corporate environmental responsibility based on sample data of A-share listed companies during 2010–2018, considering the typical data of corporate DT in recent years. DT can effectively incentivize firms, particularly heavy polluters, mature firms, and bear markets, to fulfill their environmental responsibilities, and the findings hold after the robustness tests. DT can also ultimately enhance the level of corporate environmental responsibility through micro-paths such as improved internal disclosure and enhanced attention from external investors. Simultaneously, local governments have significantly strengthened the incentive effect of DT on enterprises’ fulfillment of environmental responsibility by actively practicing green development and increasing environmental protection investments. These results provide an important theoretical and practical basis for promoting environmental pollution management and strengthening the policy support for DT.

Suggested Citation

  • Shen, Yongchang & Fu, Yunyun & Song, Malin, 2023. "Does digital transformation make enterprises greener? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1642-1654.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1642-1654
    DOI: 10.1016/j.eap.2023.11.006
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