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The impact of digital transformation on enterprise green innovation

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  • Xu, Chao
  • Sun, Guanglin
  • Kong, Tao

Abstract

China's economic development is faced with serious resource limits, environmental constraints, and massive energy consumption. Changing the development mode towards green and low-carbon development is urgent. Green innovation is an important path for the sustainable development of China's economy. We use panel data of China's A-share listed corporations from 2010 to 2020 to empirically test the impact and mechanism of digital transformation on corporate green innovation. We find that digital transformation has a statistically significant, positive impact on corporate green innovation. Further, digital transformation is conducive to promoting corporate green innovation. The intrinsic mechanism shows that the mediation mechanism between corporate research and development (R&D) investment and government green subsidies is significant, and digital transformation can promote corporate green innovation by increasing corporate R&D investment and government green subsidies. The heterogeneous effect suggests that the impact of digital transformation on green innovation of state-owned corporations is greater than that of non-state-owned corporations. Additionally, the impact on large-scale corporations is greater than that of small-scale corporations, and that of corporations in areas with a higher degree of marketization is greater than that of corporations in areas with a lower degree of marketization.

Suggested Citation

  • Xu, Chao & Sun, Guanglin & Kong, Tao, 2024. "The impact of digital transformation on enterprise green innovation," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 1-12.
    • Handle: RePEc:eee:reveco:v:90:y:2024:i:c:p:1-12
    DOI: 10.1016/j.iref.2023.11.001
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    Cited by:

    1. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
    2. Alsagr, Naif & Ozturk, Ilhan, 2024. "How do energy security risk and ICT affect green investment?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1044-1055.
    3. Ge, Tao & Hao, Zixuan & Chen, Yuan & Chen, Zhanbo, 2024. "Energy intensity constraints and corporate investment strategies: Evidence from Chinese listed enterprises," Finance Research Letters, Elsevier, vol. 64(C).
    4. 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.
    5. Yina Zhang & Wu Zhao & Haiman Liu, 2024. "Effect of Digital Transformation in Sports Companies on Green Innovation: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 16(19), pages 1-31, September.
    6. Ruizhi Liu & Mengwei Hou & Ruifeng Jing & Alexandra Bauer & Mark Wu, 2024. "The Impact of National Big Data Pilot Zones on the Persistence of Green Innovation: A Moderating Perspective Based on Green Finance," Sustainability, MDPI, vol. 16(21), pages 1-28, November.
    7. Haibo Sun & Tonghuan Bai & Youqing Fan & Zhonglu Liu, 2024. "Environmental, social, and governance performance and enterprise sustainable green innovation: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3633-3650, July.

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    More about this item

    Keywords

    Digital transformation; Enterprise green innovation; R&D investment; Government green subsidies;
    All these keywords.

    JEL classification:

    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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