The Green Ripple Effect: How Digital Transformation Reduces Carbon Emissions Across Industrial Chains

Abstract

This study examines the impact of digital transformation in focal enterprises on the carbon emission intensity of upstream and downstream firms within industrial chains, particularly in the context of global green and low-carbon development. The findings reveal that digital transformation significantly reduces carbon emission intensity by 9.97% in upstream enterprises and 11.9% in downstream enterprises, highlighting the substantial spillover effects across the industrial chain. These reductions are driven by three mechanisms: innovation integration, information spillover, and resource allocation. The study also finds that these spillover effects are more pronounced in regions with lower economic growth targets and stricter environmental regulations, particularly in central-eastern China. Additionally, the research identifies significant industry heterogeneity, with varying spillover effects across different industrial sectors. This research offers valuable policy insights for leveraging digital transformation to promote green and low-carbon industrial transformations, especially in developing countries.