Does Digital Infrastructure Promote Low‐Carbon Transition of Firms? Empirical Evidence From Enterprise Surveys in Developing Countries

Kaijie Tang and Gongyan Yang

Review of Development Economics, 2026, vol. 30, issue 1, 573-587

Abstract: This study examines how digital infrastructure impacts corporate low‐carbon transition in developing countries. Using panel data of 6352 enterprises in 26 developing countries, we find that the comprehensive development of digital infrastructure hinders corporate low‐carbon transition in developing countries, and that this effect does not stem from an extensive coverage in digital infrastructure, but rather from a reduction in its usage cost and qualitative improvement. Mechanism analysis reveals that digital infrastructure impedes corporate low‐carbon transition by alleviating production constraints, providing insignificant productivity gains, and hindering market competition. Further research reveals a rebound effect of digital infrastructure on corporate low‐carbon transition in developing countries. Compared with growing or declining firms, mature firms are more adversely impacted by digital infrastructure during the low‐carbon transition. Nevertheless, accelerating energy transition, prompting industrial agglomeration, and encouraging firms to align with international standards can address these challenges. This article offers micro‐level insights into the environmentally sustainable utilization of digital infrastructure.

Date: 2026
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