The effects of enterprise digital transformation on low-carbon urban development: Empirical evidence from China

Abstract

Global climate change poses an unprecedented and urgent challenge, driving the international community towards a consensus on low-carbon sustainable development. Enterprise digital transformation is a strategic response to the evolving demands of the Information Age, which reshapes business processes and reduces energy consumption. This paper empirically investigates the impact of enterprise digital transformation on low-carbon urban development, based on matched “firm-city” data covering the period 2006–2020. The SBM-DDF model is employed to assess low-carbon urban development, and the text mining approach is utilized to calculate the digital transformation index of enterprises. The results indicate that enterprise digital transformation significantly facilitates low-carbon urban development and the primary mechanisms involve fostering green technology innovation, increasing the scale of green investment, and driving the transformation of industrial structure. This promotional effect is positively reinforced by government environmental concerns, government environmental subsidies, and fintech development. Additionally, the positive impact of digital transformation on low-carbon development occurs more predominantly in regions with lower levels of industrialization and marketization, and this effect becomes more evident after the digital transformation wave. By establishing a micro-level empirical foundation, this paper aims to contribute to digital transformation strategic decision-making within enterprises, while also offering a tangible and feasible pathway for advancing low-carbon urban transformation initiatives.