Low-Carbon Transformation and Enterprise Digitalization: Evidence from China's Manufacturing Industry

Authors

  • Fu Ming Guangzhou Institute of Science and Technology

Abstract

With the swift growth of the digital economy and rising concerns about the environment, the digital transformation of businesses and the shift toward low-carbon practices have become essential for economic vitality and growth potential. Existing research has mainly focused on how digitalization influences low-carbon development. However, the impact of low-carbon transformation on business digitalization has not been thoroughly explored. This paper introduces a theoretical model to examine the internal dynamics of how low-carbon city pilot programs affect digitalization. Using data from manufacturing companies listed on the Shanghai and Shenzhen A-shares from 2007 to 2022, a multi-period double difference model is developed. This model treats the low-carbon city pilot policy as a quasi-natural experiment to analyze the effects of low-carbon transformation on business digital transformation and its mechanisms. The findings indicate that low-carbon transformation significantly promotes enterprise digitalization. Additionally, easing financing constraints and boosting R&D investments are effective strategies for enhancing digital transformation. The low-carbon transformation of state-owned enterprises, less polluting industries, and businesses in central China shows a more substantial impact on digitalization. These results support the hypothesis that low-carbon transformation can provide a dual benefit of environmental protection and economic development from a digital perspective. Furthermore, this research offers insights for policy development aimed at promoting the synergistic growth of low-carbon transformation and digitalization.

Published

2026-06-03

How to Cite

Fu Ming. (2026). Low-Carbon Transformation and Enterprise Digitalization: Evidence from China’s Manufacturing Industry. International Journal of Sustainable Business and Social Science, 1(2). Retrieved from https://mcglobaledu.com/journal/ijsbss/article/view/27