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Digital intelligence and low-carbon transition risk: Evidence from China

Author

Listed:
  • Wang, Jiazhen
  • Han, Youpeng
  • Long, Huaigang
  • Zhang, Xinyu

Abstract

This study examines how digital intelligence affects low-carbon transition risks in Chinese A-share listed firms from 2005 to 2023. We construct a firm-level digital-intelligent index using a text-mining approach based on annual reports and measure low-carbon transition risks via a market-based method. Our analysis reveals a significant negative relationship between digital intelligence and low-carbon transition risk, with technologies such as artificial intelligence, big data, the internet, and cloud computing services showing especially strong risk-mitigating effects. Digital intelligence promotes green innovation, a key mechanism for lowering low-carbon transition risk, with effects strengthening when green innovation surpasses a critical threshold.

Suggested Citation

  • Wang, Jiazhen & Han, Youpeng & Long, Huaigang & Zhang, Xinyu, 2025. "Digital intelligence and low-carbon transition risk: Evidence from China," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325016903
    DOI: 10.1016/j.frl.2025.108436
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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