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Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry

Author

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  • Zhang, Cheng
  • Fang, Jiming
  • Ge, Shilong
  • Sun, Guanglin

Abstract

Reducing carbon emissions in the manufacturing industry is the key to achieving the “double carbon” goal, and digital transformation provides a new way to achieve carbon emission reductions. This research empirically dissects the impact of digital transformation on carbon emissions within the manufacturing industry, using data from publicly listed companies in China's manufacturing sector spanning from 2011 to 2019. Our findings reveal that enterprise digital transformation exerts a substantial mitigating effect on carbon emissions in the manufacturing industry. The underlying mechanism underscores that digital transformation can achieve this reduction by elevating the level of government green subsidies and facilitating technological advancements. Moreover, the digital transformation of manufacturing enterprises can influence manufacturing carbon emissions through electricity consumption, exhibiting resembling an inverted U-shape. Heterogeneity analysis shows that enterprise digital transformation significantly reduces carbon emissions in the central and western regions, but the impact on the eastern region is not significant.

Suggested Citation

  • Zhang, Cheng & Fang, Jiming & Ge, Shilong & Sun, Guanglin, 2024. "Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 211-227.
    • Handle: RePEc:eee:reveco:v:92:y:2024:i:c:p:211-227
    DOI: 10.1016/j.iref.2024.02.009
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