How Does Industrial Digitalization Affect Enterprise Environmental Performance?
Abstract Despite the increasing use of digital technology in industrial production, how industrial digitalization affects the environmental performance of production activities remains unclear. This research contributes to the literature on the relationship between industrial digitalization and enterprise environmental performance by employing a large sample of Chinese manufacturing enterprises. Results indicate that the environmental performance of manufacturing enterprises has been significantly improved in the process of industrial digital transformation. Structural and technology effects are the influencing mechanisms. Industrial digitalization reduces the production scale of heavy polluting enterprises and improves product innovation and green total factor productivity, but it has an insignificant effect on total factor productivity. Moreover, industrial digitalization improves enterprise environmental performance by introducing front-end cleaner production technologies, rather than by increasing pipe-end pollutant treatment facilities.JEL Classification: Q56, O13, L86