Unleashing the Power of Digital Transformation: Boosting Green Total Factor Productivity in China’s Energy Enterprises

This study examines the influence of digital transformation (DT) on green total factor productivity (GTFP) for A-share-listed energy enterprises from 2013 to 2022. The study findings demonstrate that DT can be advantageous in improving GTFP, and this conclusion remains valid even after performing the endogeneity treatment and the robustness test. The mechanism test suggests that improving green technology innovation and alleviating financing constraints are significant transmission paths. The heterogeneity analysis’ findings show that state-owned enterprises, large-scale enterprises, and new energy enterprises benefit more significantly from DT’s favorable efficacy in improving GTFP. By focusing on energy enterprises, this study expands upon the prior research on digital transformation in the micro field. Moreover, this study reveals the critical path of digital transformation in enhancing GTFP, thus enriching its theoretical connection. GTFP will be enhanced by the joint development of digital facilities by enterprises and the government, as well as using distinct digital strategies.