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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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    3. Song, Yinghao & Bian, Zhaian & Tu, Wei & He, Juan, 2025. "How environmental regulation policies affect corporate ESG ratings: Latecomer advantage in China's digital economy," Energy Economics, Elsevier, vol. 144(C).
    4. Katz, Raúl & Jung, Juan, 2025. "Drivers of mobile broadband pricing: Cross-national evidence on policy and market dynamics," Utilities Policy, Elsevier, vol. 93(C).
    5. Zhao, Shuang & Zhang, Liqun & Peng, Lin & Zhou, Haiyan & Hu, Feng, 2024. "Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises," Technology in Society, Elsevier, vol. 77(C).
    6. Hongsen Wang & Shuanxi Fang & Qing Guo & Bo Meng, 2024. "Impact of manufacturing servitization on total factor productivity under global trade openness," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 904-928, August.
    7. Yuan, Quan & Peng, Ting & Liang, Jing, 2025. "Collaborative equity networks in the supply chain and peer effects on corporate green transition," Finance Research Letters, Elsevier, vol. 73(C).
    8. Xu, Yanhui & Deng, Fuhua & Feng, Qianbin, 2025. "The effect of tax enforcement digitalization on corporate digital transformation: Evidence from China's listed companies," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1105-1134.
    9. Tian, Zongtao & Shen, Yongchang & Chen, Zhibin, 2024. "How does bank branch expansion affect ESG: Evidence from Chinese commercial banks," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 502-514.
    10. Yueqi Sun & Junlong Ti & Fang Yang & Hsing Hung Chen, 2025. "Blessing or Curse? The Impact of the Penetration of Industrial Robots on Green Sustainable Transformation in Chinese High-Energy-Consuming Industries," Energies, MDPI, vol. 18(3), pages 1-21, February.
    11. Nie, Jun & Jian, Xin & Xu, Juanjuan & Xu, Nuo & Jiang, Tangyang & Yu, Yang, 2024. "The effect of corporate social responsibility practices on digital transformation in China: A resource-based view," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1-15.

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