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How does corporate digital transformation affect green innovation? Evidence from China's enterprise data

Author

Listed:
  • Zhang, Jian
  • Yu, Chin-Hsien
  • Zhao, Jinsong
  • Lee, Chi-Chuan

Abstract

Considering that corporate digital transformation plays a crucial role in promoting the sustainable growth of enterprises, the impact of this technological evolution on green innovation warrants additional investigation. Using firm-level data from China for the 2011–2020 period, our study demonstrates the influence of digital transformation on corporate green innovation. Our findings show that environmental information, when gathered through digital technologies, can guide firms in their green innovation efforts and assist in securing financial resources. Heterogeneity analysis suggests that in areas with stricter environmental regulations and non-high-tech firms, digital transformation exhibits a more pronounced ability to bolster green innovative capacity. Evidence also reveals the interplay between digital transformation and investors' green attention, indicating a notable positive influence on corporate green innovation. These insights provide valuable implications for both governments and corporations on how digital transformation can be harnessed to advance green innovation and achieve balanced sustainable development in both the economic and environmental dimensions.

Suggested Citation

  • Zhang, Jian & Yu, Chin-Hsien & Zhao, Jinsong & Lee, Chi-Chuan, 2025. "How does corporate digital transformation affect green innovation? Evidence from China's enterprise data," Energy Economics, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988325000404
    DOI: 10.1016/j.eneco.2025.108217
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    Cited by:

    1. Jie Dou & Junyi Dou & Meng Qin & Chi-Wei Su, 2025. "Towards Sustainable Development: Assessing the Significance of World Uncertainty in Green Technology Innovation," Sustainability, MDPI, vol. 17(3), pages 1-20, February.

    More about this item

    Keywords

    Digital transformation; Green innovation; Green attention; China;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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