Digital government development, corporate digital transformation, and carbon performance: Insights from listed companies in China

Abstract

This study explores how digital government development affects corporate carbon performance, using panel data from Chinese listed companies between 2017 and 2022. Through baseline regression and mediating effect models, we find that digital government development not only directly improves corporate carbon performance but also exerts an indirect impact by promoting corporate digital transformation. Heterogeneity analysis reveals that state-owned enterprises benefit more significantly from digital government development than private ones. The positive effects are also statistically significant in China's eastern and central regions, while it is not significant in the western region. However, the influence of digital government development on carbon performance shows no significant differences across firms of varying sizes. These findings offer practical insights for policymakers and corporate managers seeking to leverage digital technologies to advance sustainable development goals.