IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i20p9287-d1774945.html

Effects of the Digital Economy on Reducing Carbon Emissions in China’s Energy-Intensive Manufacturing Enterprises

Author

Listed:
  • Yang Cui

    (School of Economics, Yunnan University, Kunming 650500, China)

  • Shihu Yu

    (School of Economics, Yunnan University, Kunming 650500, China)

  • Yaqing Liu

    (School of Economics, Yunnan University, Kunming 650500, China)

  • Yushang Hu

    (School of Business and Tourism Management, Yunnan University, Kunming 650500, China)

  • Zanxin Wang

    (School of Business and Tourism Management, Yunnan University, Kunming 650500, China)

Abstract

The energy-intensive manufacturing industry is a significant contributor to carbon emissions, necessitating urgent measures to reduce its carbon footprint. The advent of the digital economy has engendered a milieu conducive to the decarbonization of energy-intensive manufacturing enterprises. This paper utilizes panel data from A-share listed energy-intensive manufacturing enterprises in China from 2012 to 2024 to empirically analyze the impact of the digital economy on carbon abatement performance. The findings reveal the following: First, the digital economy has a significant effect on enhancing the carbon emission reduction performance of energy-intensive manufacturing enterprises. Second, total factor productivity, R&D investment, and technology innovation have partial mediating effects in this relationship. Third, heterogeneous effects exist across enterprises of six major energy-intensive industries. Fourth, the carbon reduction effect of the digital economy is more significant in central and western regions compared to eastern regions in China. These results underscore the importance of accelerating digital transformation and formulating diversified policies predicated on industries and regions to facilitate the realization of China’s “dual carbon” goals.

Suggested Citation

  • Yang Cui & Shihu Yu & Yaqing Liu & Yushang Hu & Zanxin Wang, 2025. "Effects of the Digital Economy on Reducing Carbon Emissions in China’s Energy-Intensive Manufacturing Enterprises," Sustainability, MDPI, vol. 17(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:20:p:9287-:d:1774945
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/20/9287/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/20/9287/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sun, Huaping & Edziah, Bless Kofi & Kporsu, Anthony Kwaku & Sarkodie, Samuel Asumadu & Taghizadeh-Hesary, Farhad, 2021. "Energy efficiency: The role of technological innovation and knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Jiban Khuntia & Terence J. V. Saldanha & Sunil Mithas & V. Sambamurthy, 2018. "Information Technology and Sustainability: Evidence from an Emerging Economy," Production and Operations Management, Production and Operations Management Society, vol. 27(4), pages 756-773, April.
    3. Li, Huanjie & Zhang, Yuan & Li, Yan, 2024. "The impact of the digital economy on the total factor productivity of manufacturing firms: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    4. Sarpong, David & Boakye, Derrick & Ofosu, George & Botchie, David, 2023. "The three pointers of research and development (R&D) for growth-boosting sustainable innovation system," Technovation, Elsevier, vol. 122(C).
    5. Yi, Ming & Liu, Yafen & Sheng, Mingyue Selena & Wen, Le, 2022. "Effects of digital economy on carbon emission reduction: New evidence from China," Energy Policy, Elsevier, vol. 171(C).
    6. Ma, Zongguo & Ding, Chenhui & Wang, Xu & Huang, Qiaozhi, 2025. "Carbon emission reduction development, digital economy, and green transformation of China's manufacturing industry," International Review of Financial Analysis, Elsevier, vol. 102(C).
    7. Wang, Haijun & Zhou, Lili & Liu, Xin & Li, Huiyang & Liu, Ying, 2025. "Digital finance and new quality productive force of enterprise: Based on the analysis of enterprise industrial and commercial big data," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    8. Kun Wang & Bing Chen & Yuhong Li, 2024. "Technological, process or managerial innovation? How does digital transformation affect green innovation in industrial enterprises?," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-32, February.
    9. Ma, Qiang & Tariq, Muhammad & Mahmood, Haider & Khan, Zeeshan, 2022. "The nexus between digital economy and carbon dioxide emissions in China: The moderating role of investments in research and development," Technology in Society, Elsevier, vol. 68(C).
    10. Wang, Yafei & Shi, Ming & Liu, Junnan & Zhong, Min & Ran, Rong, 2025. "The impact of digital-real integration on energy productivity under a multi-governance framework: The mediating role of AI and embodied technological progress," Energy Economics, Elsevier, vol. 142(C).
    11. Wang, Kai & Wei, Yixuan, 2025. "Digital regulation and firm productivity: Evidence from a quasi-natural experiment in China," Economic Modelling, Elsevier, vol. 152(C).
    12. Yang, Yingya & Jin, Yifei & Xue, Qinyuan, 2024. "How does digital transformation affect corporate total factor productivity?," Finance Research Letters, Elsevier, vol. 67(PB).
    13. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    14. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Boyang & Du, Yuqin & Chen, Guijing, 2025. "Dynamic nexus between urban digitization and pollutant discharge: RBC theory and empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 211(C).
    2. Wang, Lianghu & Shao, Jun, 2023. "Digital economy, entrepreneurship and energy efficiency," Energy, Elsevier, vol. 269(C).
    3. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    4. Jinhui Zheng & Shikuan Zhao & Yan Tan & Daniel Balsalobre-Lorente, 2026. "Does the digital economy promote synergy between pollution control and carbon reduction? Evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(2), pages 2683-2716, February.
    5. Nan Li & Beibei Shi & Rong Kang, 2023. "Analysis of the Coupling Effect and Space-Time Difference between China’s Digital Economy Development and Carbon Emissions Reduction," IJERPH, MDPI, vol. 20(1), pages 1-25, January.
    6. Wang, Bo & Wang, Jianda, 2025. "China’s green digital era: How does digital economy enable green economic growth?," Innovation and Green Development, Elsevier, vol. 4(1).
    7. Feifei Yu & Jiayi Mao & Qing Jiang, 2025. "Accumulate thickly to grow thinly: the U-shaped relationship between digital transformation and corporate carbon performance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 2135-2160, January.
    8. Opoku, Eric Evans Osei & Kufuor, Nana Kwabena & Manu, Sylvester Adasi, 2021. "Gender, electricity access, renewable energy consumption and energy efficiency," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    9. Shao, Jun & Wang, Lianghu, 2023. "Can new-type urbanization improve the green total factor energy efficiency? Evidence from China," Energy, Elsevier, vol. 262(PB).
    10. Xuefeng Hou & Dianfeng Zhang & Liyuan Fu & Fu Zeng & Qing Wang, 2023. "Spatio-Temporal Evolution and Influencing Factors of Coupling Coordination Degree between Urban–Rural Integration and Digital Economy," Sustainability, MDPI, vol. 15(12), pages 1-26, June.
    11. Zakaria Sorgho & Joe Tharakan, 2022. "Do PTAs with Environmental Provisions Reduce GHG Emissions? Distinguishing the Role of Climate-Related Provisions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 709-732, November.
    12. Yu, Haijing & Shen, Shaowei & Han, Lei & Ouyang, Jian, 2024. "Spatiotemporal heterogeneities in the impact of the digital economy on carbon emission transfers in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    13. Pingguo Xu & Leyi Chen & Huajuan Dai, 2022. "Pathways to Sustainable Development: Corporate Digital Transformation and Environmental Performance in China," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    14. Liang Liu & Yuhan Zhang & Xiujuan Gong & Mengyue Li & Xue Li & Donglin Ren & Pan Jiang, 2022. "Impact of Digital Economy Development on Carbon Emission Efficiency: A Spatial Econometric Analysis Based on Chinese Provinces and Cities," IJERPH, MDPI, vol. 19(22), pages 1-21, November.
    15. Liu, Yue & Liu, Nengyu & Huo, Yijia, 2025. "Impact of digital technology innovation on carbon emission reduction and energy rebound: Evidence from the Chinese firm level," Energy, Elsevier, vol. 320(C).
    16. Shuangjie Li & Wei Wang & Liming Wang & Ge Wang, 2023. "Digital Economy and 3E Efficiency Performance: Evidence from EU Countries," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    17. Zhuohang Li & Tao Shen & Yifen Yin & Hsing Hung Chen, 2022. "Innovation Input, Climate Change, and Energy-Environment-Growth Nexus: Evidence from OECD and Non-OECD Countries," Energies, MDPI, vol. 15(23), pages 1-19, November.
    18. Li, Feiyang & Lin, Ziyue & Huang, Liangxiong & Yang, Caiting, 2022. "Environmental regulation and global value chain division position：Analysis based on global transnational data," Energy Policy, Elsevier, vol. 168(C).
    19. Richa Patel & Kajul Bharti & Dipti Ranjan Mohapatra & Sunil Kumar Yadav, 2026. "Juxtaposing the influence of digitalization and supply chain disruption on green innovation: moderating role of human capital development," International Economics and Economic Policy, Springer, vol. 23(2), pages 1-30, May.
    20. Wang, Jianda & Dong, Kangyin & Dong, Xiucheng & Taghizadeh-Hesary, Farhad, 2022. "Assessing the digital economy and its carbon-mitigation effects: The case of China," Energy Economics, Elsevier, vol. 113(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:20:p:9287-:d:1774945. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.