IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i9p3944-d1644207.html
   My bibliography  Save this article

Digital Transformation and Corporate Carbon Emissions: Evidence from China’s Listed Companies

Author

Listed:
  • Xiaojuan Cheng

    (School of Accounting, Hunan University of Technology and Business, Changsha 410205, China)

  • Zihao Zhang

    (School of Accounting, Hunan University of Technology and Business, Changsha 410205, China)

  • Duojun He

    (School of Business Administration, Hunan University of Technology and Business, Changsha 410205, China)

  • Chunguang Quan

    (School of Economics and Management, Changsha University, Changsha 410022, China)

Abstract

Digital transformation is a crucial engine empowering enterprises for green, low-carbon development and a key pathway towards achieving China’s dual carbon goals. To investigate the carbon-emission reduction effects and mechanisms of corporate digital transformation, the panel data of China’s A-share listed companies from 2010 to 2021 were utilized to empirically examine the impact and mechanisms of digital transformation on corporate carbon emissions in this study, based on the dynamic capability and resource-based theory. The results show that the following: (1) Digital transformation demonstrates significant potential in reducing corporate carbon emissions; (2) The emission reduction effects are primarily achieved through the three key mechanisms of enhancing green innovation capabilities, alleviating financing constraints, and optimizing human capital structures; (3) The effect of digital transformation on carbon emission reductions demonstrates significant heterogeneity across enterprise characteristics and geographical locations, with particularly notable impacts observed in high-tech firms, state-owned enterprises, carbon-intensive industries, and companies located in eastern China. Therefore, we should vigorously promote the process of digital transformation of enterprises and implement targeted policy measures to support corporate green innovation, enhance financing accessibility, and optimize human capital structure. Simultaneously, we should develop differentiated emission reduction mechanisms that account for enterprise-specific characteristics, thereby maximizing the effectiveness of digital transformation in achieving dual-carbon objectives.

Suggested Citation

  • Xiaojuan Cheng & Zihao Zhang & Duojun He & Chunguang Quan, 2025. "Digital Transformation and Corporate Carbon Emissions: Evidence from China’s Listed Companies," Sustainability, MDPI, vol. 17(9), pages 1-25, April.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:3944-:d:1644207
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/9/3944/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/9/3944/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rehman, Shafique Ur & Kraus, Sascha & Shah, Syed Asim & Khanin, Dmitry & Mahto, Raj V., 2021. "Analyzing the relationship between green innovation and environmental performance in large manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    2. Zhou, Shuya & Zhou, Peiyan & Ji, Hannah, 2022. "Can digital transformation alleviate corporate tax stickiness: The mediation effect of tax avoidance," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Dayuan Li & Min Huang & Shenggang Ren & Xiaohong Chen & Lutao Ning, 2018. "Environmental Legitimacy, Green Innovation, and Corporate Carbon Disclosure: Evidence from CDP China 100," Journal of Business Ethics, Springer, vol. 150(4), pages 1089-1104, July.
    4. Zhang, Yiren & Ran, Congjing, 2023. "Effect of digital economy on air pollution in China? New evidence from the “National Big Data Comprehensive Pilot Area” policy," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 986-1004.
    5. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    6. Haefner, Naomi & Wincent, Joakim & Parida, Vinit & Gassmann, Oliver, 2021. "Artificial intelligence and innovation management: A review, framework, and research agenda✰," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    7. Yu Ma & Pan Tao, 2023. "A Perspective on Management Myopia: The Impact of Digital Transformation on Carbon Emission Intensity," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    8. Umar, Muhammad & Mirza, Nawazish & Hasnaoui, Jamila Abaidi & Rochoń, Małgorzata Porada, 2022. "The nexus of carbon emissions, oil price volatility, and human capital efficiency," Resources Policy, Elsevier, vol. 78(C).
    9. Weidong Chen & Xiaohui Yuan, 2021. "Financial inclusion in China: an overview," Frontiers of Business Research in China, Springer, vol. 15(1), pages 1-21, December.
    10. Yami, Saïd & M'Chirgui, Zouhaier & Spano, Claude & Gontier Barykina, Olga, 2021. "Reinventing science and technology entrepreneurship education: The role of human and social capitals," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    11. Lu Zhang & Shenggang Ren & Xiaohong Chen & Dayuan Li & Duanjinyu Yin, 2020. "CEO Hubris and Firm Pollution: State and Market Contingencies in a Transitional Economy," Journal of Business Ethics, Springer, vol. 161(2), pages 459-478, January.
    12. Yu Chen & Shuangshuang Liu & Yanqiu Xiao & Qian Zhou, 2024. "Can Digital Transformation Reduce Enterprise Carbon Intensity? An Empirical Analysis of Chinese Manufacturers," Sustainability, MDPI, vol. 16(12), pages 1-19, June.
    13. Bashir, Muhammad Farhan & Shahbaz, Muhammad & Malik, Muhammad Nasir & Ma, Beiling & Wang, Jianming, 2023. "Energy transition, natural resource consumption and environmental degradation: The role of geopolitical risk in sustainable development," Resources Policy, Elsevier, vol. 85(PA).
    14. Sadorsky, Perry, 2012. "Information communication technology and electricity consumption in emerging economies," Energy Policy, Elsevier, vol. 48(C), pages 130-136.
    15. Kammerer, Daniel, 2009. "The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany," Ecological Economics, Elsevier, vol. 68(8-9), pages 2285-2295, June.
    16. Toni M. Whited & Guojun Wu, 2006. "Financial Constraints Risk," The Review of Financial Studies, Society for Financial Studies, vol. 19(2), pages 531-559.
    17. Rong, Liu & Wang, Zhenbo & Li, Zhijun, 2024. "Unraveling the role of Financial Risk, social globalization and Economic Risk towards attaining sustainable environment in China: Does resources curse still holds," Resources Policy, Elsevier, vol. 88(C).
    18. Li, Chengming & Huo, Peng & Wang, Zeyu & Zhang, Weiguang & Liang, Feiyan & Mardani, Abbas, 2023. "Digitalization generates equality? Enterprises’ digital transformation, financing constraints, and labor share in China," Journal of Business Research, Elsevier, vol. 163(C).
    19. Rodgers, Waymond & Cardenas, Jesus A. & Gemoets, Leopoldo A. & Sarfi, Robert J., 2023. "A smart grids knowledge transfer paradigm supported by experts' throughput modeling artificial intelligence algorithmic processes," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    20. Xu, Qiong & Zhong, Meirui & Li, Xin, 2022. "How does digitalization affect energy? International evidence," Energy Economics, Elsevier, vol. 107(C).
    21. Zheng, Deyuan & Song, Hang & Zhao, Chunguang & Liu, Yujiao & Zhao, Wenhao, 2024. "Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China," International Journal of Production Economics, Elsevier, vol. 272(C).
    22. Gan, Jiawu & Liu, Lihua & Qiao, Gang & Zhang, Qin, 2023. "The role of robot adoption in green innovation: Evidence from China," Economic Modelling, Elsevier, vol. 119(C).
    23. Zhang, Wei & Liu, Xuemeng & Wang, Die & Zhou, Jianping, 2022. "Digital economy and carbon emission performance: Evidence at China's city level," Energy Policy, Elsevier, vol. 165(C).
    24. Wang, Lianghu & Shao, Jun, 2023. "Digital economy, entrepreneurship and energy efficiency," Energy, Elsevier, vol. 269(C).
    25. Lee, Chien-Chiang & Chang, Yu-Fang & Wang, En-Ze, 2022. "Crossing the rivers by feeling the stones: The effect of China's green credit policy on manufacturing firms' carbon emission intensity," Energy Economics, Elsevier, vol. 116(C).
    26. Luo, Jigang & Wang, Zhen & Wu, Maohua, 2021. "Effect of place-based policies on the digital economy: Evidence from the Smart City Program in China," Journal of Asian Economics, Elsevier, vol. 77(C).
    27. Yi Lin & Xin Qi & Lijuan Wang, 2024. "Digital Transformation and Carbon Intensity: Evidence from Chinese Tourism Companies," Sustainability, MDPI, vol. 16(21), pages 1-22, October.
    28. Ding, Tao & Li, Jiangyuan & Shi, Xing & Li, Xuhui & Chen, Ya, 2023. "Is artificial intelligence associated with carbon emissions reduction? Case of China," Resources Policy, Elsevier, vol. 85(PB).
    29. Wang, Lei & Chen, Yangyang & Ramsey, Thomas Stephen & Hewings, Geoffrey J.D., 2021. "Will researching digital technology really empower green development?," Technology in Society, Elsevier, vol. 66(C).
    30. Saïd Yami & Zouhaier M'Chirgui & Claude Spano & Olga Gontier Barykina, 2021. "Reinventing science and technology entrepreneurship education: The role of human and social capitals," Post-Print hal-03145505, HAL.
    31. Qiuyue Xia & Lu Li & Bin Zhang & Jie Dong, 2022. "Nonlinear Influence of Land-Use Transition on Carbon Emission Transfer: A Threshold Regression Analysis of the Middle Reaches of the Yangtze River in China," Land, MDPI, vol. 11(9), pages 1-24, September.
    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. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    2. Lei, Peng & Li, Xiaoyan & Yuan, Mingkang, 2024. "The consequence of the digital economy on energy efficiency in Chinese provincial and regional contexts: Unleashing the potential," Energy, Elsevier, vol. 311(C).
    3. Sheikh Farhan Ashraf & Cai Li & Muhammad Umair Wattoo & Majid Murad & Babak Mahmood, 2024. "Green horizons: Unleashing green innovation through green business strategies and competencies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4233-4251, July.
    4. Pereira, Vijay & Nair, Asha KS. & Bhattacharyya, Som Sekhar, 2025. "Exploring and investigating the complementarity and multidimensionality of innovation for sustainability research: Past present and future," Technovation, Elsevier, vol. 139(C).
    5. Morteza Akbari & Hamid Padash & Zahra Shahabaldini Parizi & Haniye Rezaei & Elmira Shahriari & Ala Khosravani, 2022. "A bibliometric review of green innovation research: identifying knowledge domain and network," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 3993-4023, December.
    6. Wang, Jiangquan & Nghiem, Xuan-Hoa & Jabeen, Fauzia & Luqman, Adeel & Song, Malin, 2023. "Integrated development of digital and energy industries: Paving the way for carbon emission reduction," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    7. Wenfei Song & Xianfeng Han, 2024. "Does the digital economy contribute to China’s energy transition?," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-25, October.
    8. Dayuan Li & Jialin Jiang & Lu Zhang & Chen Huang & Ding Wang, 2023. "Do CEOs with Sent-Down Movement Experience Foster Corporate Environmental Responsibility?," Journal of Business Ethics, Springer, vol. 185(1), pages 147-168, June.
    9. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    10. Caroline Danièle Mothe & Thuc Uyen Nguyen-Thi, 2017. "Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms," Post-Print hal-01609129, HAL.
    11. Shunbin Zhong & Huafu Shen & Ziheng Niu & Yang Yu & Lin Pan & Yaojun Fan & Atif Jahanger, 2022. "Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    12. Zhipeng Yu & Yi Liu & Taihua Yan & Ming Zhang, 2024. "Carbon emission efficiency in the age of digital economy: New insights on green technology progress and industrial structure distortion," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4039-4057, July.
    13. He, Yiqing & Ding, Xin & Yang, Chuchu, 2021. "Do environmental regulations and financial constraints stimulate corporate technological innovation? Evidence from China," Journal of Asian Economics, Elsevier, vol. 72(C).
    14. Cui, Xin & Wang, Chunfeng & Sensoy, Ahmet & Liao, Jing & Xie, Xiaochen, 2023. "Economic policy uncertainty and green innovation: Evidence from China," Economic Modelling, Elsevier, vol. 118(C).
    15. Ahmed Alyahya & Gomaa Agag, 2025. "Improving Corporate Environmental Performance Through Big Data Analytics Implementation: The Role of Industry Environment," Sustainability, MDPI, vol. 17(7), pages 1-22, March.
    16. Mei-Rui Zhong & Jia-Yu Fu & Han Zou, 2025. "The data as a production factor: nonlinear effects of factor efficiency on haze pollution," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(4), pages 8977-9002, April.
    17. Xiujin Guo & Zhengming Wang, 2024. "How does the digital economy affect the green development of China’s industry?," PLOS ONE, Public Library of Science, vol. 19(9), pages 1-21, September.
    18. Jingrong Tan & Lin Chen, 2022. "Spatial Effect of Digital Economy on Particulate Matter 2.5 in the Process of Smart Cities: Evidence from Prefecture-Level Cities in China," IJERPH, MDPI, vol. 19(21), pages 1-20, November.
    19. Usman, Ahmed & Ozturk, Ilhan & Ullah, Sana & Hassan, Ali, 2021. "Does ICT have symmetric or asymmetric effects on CO2 emissions? Evidence from selected Asian economies," Technology in Society, Elsevier, vol. 67(C).
    20. Sun, Lihua & Bai, Chunguang & Sarkis, Joseph, 2024. "Environmental and social performance relationships to firm efficiency: Evidence from the semiconductor industry," International Journal of Production Economics, Elsevier, vol. 278(C).

    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:9:p:3944-:d:1644207. 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.