Digital economy development and enterprise carbon reduction: evidence from China

Purpose This study examines the impact of the digital economy on enterprises carbon reduction from a micro-firm perspective. Design/methodology/approach Drawing on China’s National E-commerce Demonstration Cities policy, this study utilizes a sample from the 2007–2015 China Tax Survey, which covers millions of enterprises, and applies a staggered difference-in-differences model for analysis. Findings The results indicate that digital economic development significantly promotes enterprise carbon reduction. Mechanism analysis reveals that green innovation and production efficiency are key channels for this impact. Furthermore, heterogeneity analysis suggests that the emission reduction effect is more pronounced in state-owned enterprises, cities with less government regulation, highly polluting industries, and highly competitive sectors. Originality/value This study emphasizes the significance of digital economy in enhancing enterprise carbon reduction. It provides a theoretical framework for enterprises to respond to sustainable development.