Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises

Abstract

Digital transformation provides new opportunities for the green development of enterprises. Clarifying the impact and mechanism of digital transformation on enterprise pollution reduction has important policy implications for the synergistic development of digitalization and greenization. This paper explores the impact of digital transformation on enterprise pollution abatement using data from Chinese manufacturing enterprises and fixed effects models. The empirical results show that digital transformation contributes to enterprise pollution reduction. Furthermore, the pollution reduction role of digital transformation is more pronounced in enterprises with high degrees of pollution intensity. Digital transformation acts on pollution reduction through productivity improvement and scale expansion, while a mechanism for green technology innovation does not exist. Additionally, industry attributes and external environment heterogeneity affect the pollution abatement role of digital transformation. Enterprises can achieve stronger pollution abatement from digital transformation when they belong to high-polluting industries, high-tech industries, areas with high environmental regulation (HER), and cohorts. The paper provides new micro evidence that digital transformation promotes pollution reduction, enriches the literature on the environmental impact of digital transformation, and provides beneficial insights for enterprises to drive pollution reduction in the era of the digital economy.