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The impact of digitalization on the green transformation of China's industrial sectors: The mediating role of green technology innovation and technological transformation

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  • Ai, Mingye
  • Zhang, Wei
  • Du, Shurong
  • Yu, Xiaohan
  • Bu, Yan

Abstract

As a pivotal driver of high-quality development, the impact of digitalization on industrial green transformation remains somewhat opaque. This study utilizes panel data from 35 industrial sectors in China, covering the years 2005–2021, to construct a fixed effects model that explores the relationship between digitalization and industrial green transformation, as well as its potential mechanisms. The results show that digitalization has a significant role in promoting industrial green transformation, a conclusion validated even after robustness tests. Furthermore, heterogeneity analysis reveals that industries characterized by low energy consumption, low pollution, and large scale experience a more pronounced positive effect from digitalization on industrial green transformation. The mechanism analysis reveals that digitalization propels industrial green transformation by enhancing the capability for green technological innovation. Moreover, digitalization expedites technological transformation, thereby fostering capital renewal and bolstering end-of-pipe treatment capabilities, all of which collectively propel the industrial green transformation. This study contributes to the novel insights from the dual perspectives of green technological innovation and technological transformation, which provides policy implications for developing countries worldwide to enhance industrial green transition through digitalization.

Suggested Citation

  • Ai, Mingye & Zhang, Wei & Du, Shurong & Yu, Xiaohan & Bu, Yan, 2024. "The impact of digitalization on the green transformation of China's industrial sectors: The mediating role of green technology innovation and technological transformation," International Review of Economics & Finance, Elsevier, vol. 96(PC).
    • Handle: RePEc:eee:reveco:v:96:y:2024:i:pc:s1059056024007287
    DOI: 10.1016/j.iref.2024.103736
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