Does digital-industrial technology integration reduce corporate carbon emissions?

Abstract

The integration of digital technology and industrial technology emerges as a pivotal avenue for enterprises to attain Sustainable Development Goals (SDGs), promoting the transition towards a sustainable and green trajectory of development. The panel data utilized in this paper encompasses financial, operational, and carbon emission metrics of publicly listed companies in China from 2008 to 2019. This longitudinal dataset enables us to perform robust statistical analyses to evaluate the impacts of Digital-Industrial technology integration on carbon emission intensity over time. The results indicate that: (i) Digital-Industrial technology integration significantly reduces the carbon emission intensity of enterprises, the conclusion remains robust when subjected to endogeneity and sensitivity analyses. (ii) Digital-Industrial technology integration mainly reduces the marginal cost of production and enhances the accumulation of knowledge to reduce the carbon emission intensity of enterprises. (iii) Digital-Industrial Technology Integration manifests more pronounced effects in curbing carbon emissions in regions characterized by robust property rights protection and well-developed digital infrastructure. (iv) Further research finds that Digital-Industrial technology integration increases the green technology innovation and ESG (Environmental, Social, and Governance) performance of enterprises. The results of this study provide empirical evidence for the carbon emission reduction function of the Digital-Industrial technology integration, and also verify the positive externality impact of the Digital-Industrial technology integration on the enterprise green innovation and SDGs.