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The Impact of Urban Digital Intelligence Transformation on Corporate Carbon Performance: Evidence from China

Author

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  • Zhen Wang

    (School of Economics, Lanzhou University, Lanzhou 730000, China
    These authors contributed equally to this work.)

  • Hongwen Jia

    (School of Economics, Lanzhou University, Lanzhou 730000, China
    These authors contributed equally to this work.)

  • Jiale Wu

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

Abstract

In response to urban digital intelligence transformation (DIT) and the rising global emphasis on corporate carbon performance (CP), this study leverages the “National New-Generation AI Innovation Development Pilot Zones” (NAIPZs) as a quasi-natural experiment. Utilizing an unbalanced panel of A-share listed firms from China’s Shanghai and Shenzhen stock exchanges between 2010 and 2022, this study employs a multi-period Difference-in-Differences (DID) model combined with propensity score matching (PSM-DID) to examine how urban DIT affects corporate CP and its underlying mechanisms. The results indicate that the policy significantly enhances corporate CP, with robustness confirmed through parallel trend, placebo, and PSM-DID tests. Heterogeneity analysis shows stronger effects for non-state-owned enterprises, high-pollution industries, and large enterprises. Mechanism analysis reveals that green technological innovation and R&D expenditure are key drivers of improved CP. The study concludes with policy suggestions including tailored regulation, the development of innovation platforms, strengthened R&D support, and the implementation of monitoring systems to better harness AI technologies for improving corporate carbon performance.

Suggested Citation

  • Zhen Wang & Hongwen Jia & Jiale Wu, 2025. "The Impact of Urban Digital Intelligence Transformation on Corporate Carbon Performance: Evidence from China," Sustainability, MDPI, vol. 17(12), pages 1-26, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5591-:d:1681349
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