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Digital transformation and carbon reduction: Evidence from Chinese listed companies

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  • Fu, Haoliang
  • Li, Mao
  • Guo, Wenwei
  • Huang, Jinbo

Abstract

Utilizing manually collected firm-level data on Scope 1 and Scope 2 carbon emission disclosures from publicly listed companies in China, this study examines the impact of digital transformation on corporate carbon emission reduction. Empirical results demonstrate that digital transformation significantly decreases total carbon emission intensity, direct emission intensity, and indirect emission intensity, thereby demonstrating a robust carbon reduction effect. Mechanism analysis reveals that the carbon reduction effect operates primarily through green innovation effect, scale expansion effect, and factor allocation effect. Extended analysis further shows that the carbon reduction effect is amplified by the implementation of national policies and the position in the green technology network.

Suggested Citation

  • Fu, Haoliang & Li, Mao & Guo, Wenwei & Huang, Jinbo, 2025. "Digital transformation and carbon reduction: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009110
    DOI: 10.1016/j.frl.2025.107652
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    1. Leifeng Zhang & Hui Wu & Yang Shen, 2025. "Unlocking the Digital Dividend: How Does Digitalization Promote Corporate Carbon Emission Reduction?," Sustainability, MDPI, vol. 17(16), pages 1-21, August.

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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