Enterprise digital transformation, biased technological progress and carbon total factor productivity

Suling Feng, Yiwei Mao, Guoxiang Li and Junhong Bai

Journal of Environmental Planning and Management, 2025, vol. 68, issue 1, 154-184

Abstract: To achieve carbon peaking and carbon neutrality while stabilizing economic development, enterprises need to achieve technological and management changes, and digital transformation is an important channel for change. This paper uses the 2010–2020 data on the A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from China’s power industry and takes these companies as research objects. The results show that enterprise digital transformation can significantly improve carbon total factor productivity (CTFP). Heterogeneity analysis shows that in state-owned enterprises and in those enterprises integrating coal and electricity, a high proportion of clean energy installed capacity and a high level of profitability result in greater improvements. The mechanism test shows that enterprise digital transformation changes factor preference and marginal output, significantly promotes factor-biased technological progress, and saves costs on expensive factors such as energy, thus improving CTFP. This paper provides new ideas for globally promoting digital transformation and sustainable development.

Date: 2025
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DOI: 10.1080/09640568.2023.2239493

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