Toward Sustainable Development: Can Digital Transformation of Industrial Enterprise Drive Carbon Reduction?

Digital technologies have great potential to improve the global environment. To investigate the issue, this research takes Chinese A-share listed industrial firms as the observation object to explore the influence of digital transformation (DT) of industrial enterprise on carbon reduction. The results show that digital transformation can promote carbon reduction and provide strong support for achieving sustainable economic development. Digital transformation reduces carbon emissions through promoting green technology innovation, improving internal control quality, and easing financing constraints. The carbon-reducing role of digital transformation of state-owned industrial companies is more obvious than that of others. The influence of digital transformation on carbon emissions in firms with low energy consumption and low emissions is linear, whereas in firms with high energy consumption and high emissions, the digital transformation has an inverted U-shaped influence. The effect of digital transformation on carbon reduction has area heterogeneity, among which the eastern area in China is the most obvious, followed by the northeast and central regions; the western region is not significant. The research conclusions provide important theoretical support and practical experience for in-depth analysis of the driving mechanism of industrial carbon emission reduction and for seeking policy optimization paths in order to contribute wisdom to promoting sustainable development.