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Does Digital Transformation Contribute to Corporate Carbon Emissions Reduction? Empirical Evidence from China

Author

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  • Jun Gao

    (Business School, Luoyang Normal University, Luoyang 471934, China)

  • Ning Xu

    (School of Political Science and Public Administration, Henan Normal University, Xinxiang 453007, China)

  • Ju Zhou

    (Business School, Luoyang Normal University, Luoyang 471934, China)

Abstract

The digital transformation of enterprises is a significant catalyst for achieving cleaner production and directly affects a company’s carbon performance. This research elucidates the theoretical logic and potential impact mechanisms of digital transformation in reducing corporate carbon emissions. Second, using a panel data set of Chinese A-share listed companies from 2007 to 2020, this study quantitatively investigates the effect of corporate digital transformation on the carbon emissions intensity of businesses. The empirical results indicate that corporate digital transformation has a statistically significant negative effect on the carbon emissions intensity of Chinese firms. Several robustness tests have validated this conclusion. The heterogeneity analysis reveals that state-owned businesses, firms with high carbon intensity, and those with strong financing capacity would benefit more from digital transformation in achieving the goal of reducing carbon emissions. Furthermore, the impact of digital transformation on corporate carbon emission abatement is more prominent in industries with limited technological input and high energy consumption. At the regional level, digital transformation has a more significant impact on reducing carbon emissions in cities with stringent environmental regulation, advanced marketization, and resource-based economies. The transmission mechanism analysis confirms that improving corporate energy use efficiency, enhancing financial performance, and fostering green innovation are crucial transmission mechanisms through which digital transformation can help enterprises decrease their carbon emissions. These findings assist companies in comprehending the role of digital transformation in lowering carbon emissions and provide them with valuable insights.

Suggested Citation

  • Jun Gao & Ning Xu & Ju Zhou, 2023. "Does Digital Transformation Contribute to Corporate Carbon Emissions Reduction? Empirical Evidence from China," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13414-:d:1234999
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    References listed on IDEAS

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    Cited by:

    1. Po‐Sheng Yang & Jin‐Li Hu, 2026. "Intersections Between Digital Innovation and Corporate Social Responsibility: Evidence From Listed Electronics Companies in Taiwan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(2), pages 2705-2736, March.
    2. Ziyuan Guo & Xiang Yuan & Kai Zhou & Linjun Fu & Yicheng Song, 2024. "How Does the Digital Transformation Affect the Carbon Emissions of Manufacturing Enterprises in China? The Perspective of Green Technology Innovation," Sustainability, MDPI, vol. 16(8), pages 1-19, April.
    3. Sen Gao & Hao Li, 2025. "Digitalization and Carbon Performance: Structural Changes in Emerging Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(6), pages 17728-17754, December.
    4. Lv, Jingyao & Zhao, Zhongxiu & Ji, Yongsheng, 2025. "Can big data aggregation help businesses save energy and reduce emissions? Quasi-natural experiment in big data comprehensive test," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 89-102.
    5. Yanqi Sun & Yuzhong Lu & Yaxin Wu & Cheng Xu & Howard Davey, 2026. "Synergizing ESG and Digital Transformation for Corporate Decarbonization," Business Strategy and the Environment, Wiley Blackwell, vol. 35(2), pages 2581-2599, February.
    6. Zhe Sun & Liang Zhao & Ankit Mehrotra & Muhammad Asif Salam & Muhammad Zafar Yaqub, 2025. "Digital transformation and corporate green innovation: An affordance theory perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 34(1), pages 433-449, January.
    7. Song, Yanni & Xie, Zijun & Song, Yingchun, 2025. "The impact of Digital transformation on carbon emission intensity," International Review of Economics & Finance, Elsevier, vol. 102(C).
    8. Jianliang Yang & Hongbo Shan & Penglong Xian & Xiaomeng Xu & Na Li, 2024. "Impact of Digital Transformation on Green Innovation in Manufacturing under Dual Carbon Targets," Sustainability, MDPI, vol. 16(17), pages 1-21, September.
    9. Jingjing Qian & Xiaomin Zhang & Xiang-Wu Yan & Ning Xu, 2024. "Can Information Consumption Promote the Digital Transformation of Enterprises? Empirical Evidence from China," Sustainability, MDPI, vol. 16(24), pages 1-28, December.
    10. Huiting Guo & Rui Qiu & Yapeng Li, 2025. "Research on the Impact of Digital Transformation Network Peer Groups on Corporate Carbon Neutrality Performance: Based on the Interlocking Directorate Network," Sustainability, MDPI, vol. 17(6), pages 1-32, March.
    11. Anhang Chen & Huiqin Zhang & Yuxiang Zhang & Junwei Zhao, 2024. "Manufacturers’ digital transformation under carbon cap-and-trade policy: investment strategy and environmental impact," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    12. Zhu, Ning & Ma, Biyin & Wang, Bing & Tang, Xuan & Yu, Zhiqian, 2025. "Can digital transformation expand the boundaries of the earnings potential of commercial banks? Evidence from China," China Economic Review, Elsevier, vol. 94(PB).
    13. Zhilong Lou & Nan Gao & Min Lu, 2024. "The Impact of Enterprise Digital Transformation on Low-Carbon Supply Chains: Empirical Evidence from China," Sustainability, MDPI, vol. 16(18), pages 1-22, September.

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