CORPORATE DIGITALIZATION AND GREEN TRANSITION: EVIDENCE FROM CHINA

Faced with worsening environmental challenges, it is imperative to ascertain whether the digital economy, China’s new economic driving force, can promote green transition through digitalization. This study analyzes the impact of digitalization on green transition and the mechanisms involved. Results suggest that corporate digitalization significantly promotes green transition by alleviating financing constraints, improving operational efficiency and exerting governance effects. Big data, intelligent manufacturing and internet business models have stronger positive impacts than information technology. Digitalization’s positive effect is pronounced in state-owned enterprises (SOEs) and those under strong environmental regulations. This study provides empirical evidence for integrating the digital economy with green development.