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Facilitating or Inhibiting: Digital Transformation and Carbon Emissions of Manufacturing Enterprises

Jinke Li, Shuang Zhang (), Luyue Ji and Fang Wang
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Jinke Li: Department of Marketing, Qingdao University Business School, Qingdao 266071, China
Shuang Zhang: Department of Marketing, Qingdao University Business School, Qingdao 266071, China
Luyue Ji: Department of Marketing, Qingdao University Business School, Qingdao 266071, China
Fang Wang: Department of Marketing, Qingdao University Business School, Qingdao 266071, China

Sustainability, 2025, vol. 17, issue 1, 1-23

Abstract: As global attention to the issue of climate change grows, the concepts of carbon peaking and carbon neutrality, proposed by China, have increasingly gained traction. In this international context, digital technology and green development are closely interwoven, carving out a distinct path for countries worldwide to achieve carbon emission reduction goals. This study empirically explores the mechanism of how digital transformation impacted the carbon emissions of Chinese A-share listed manufacturing enterprises from 2007 to 2021. The results indicate a significant inverted U-shaped nonlinear connection between digital transformation and carbon emissions within manufacturing enterprises. Green technology innovation, which is among the crucial driving forces for sustainable development, can act as a mediating factor. External environmental regulations positively moderate the relationship between digital transformation and carbon emissions in manufacturing firms. Furthermore, the heterogeneity analysis reveals that the nonlinear impact of digital transformation on carbon emissions in manufacturing enterprises is particularly significant in western regions, non-resource-based cities, light industry sectors, and large-scale enterprises. This paper innovatively verifies, at the micro level, the inverted U-shaped impact of digital transformation on carbon emissions in manufacturing enterprises, as well as its underlying mechanism. It provides theoretical support and practical guidance for the effective implementation of carbon emission reduction in the manufacturing sector. Meanwhile, it also offers valuable insights for manufacturing enterprises to formulate strategies that take both digital development and sustainable development into account, thereby contributing to the achievement of sustainable development.

Keywords: digital transformation; manufacturing enterprises; carbon emission; green technology innovation; environmental regulation; inverted U-shaped relationship (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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