Mechanisms of digitalization in reshaping the green transformation of energy firms in China

Yang X., Razzaq A., Ozturk I.

JOURNAL OF ENVIRONMENTAL MANAGEMENT, vol.393, 2025 (SCI-Expanded, Scopus) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 393
  • Publication Date: 2025
  • Doi Number: 10.1016/j.jenvman.2025.127047
  • Journal Name: JOURNAL OF ENVIRONMENTAL MANAGEMENT
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, BIOSIS, Compendex, EMBASE, Environment Index, Geobase, Greenfile, Index Islamicus, Public Affairs Index, Social Sciences Abstracts
  • Istanbul University Affiliated: No

Abstract

The rapid advancement of digital technologies has potential to transform the production models, operational efficiencies, and resource allocations of energy firms. Given this, we analyze how energy firms' digitalization influences green transformation using China's A-share listed companies data from 2008 to 2022. The results reveal a significant positive effect of digitalization on the green transformation of energy firms. Specifically, digitalization influences internal decision-making by reducing managerial myopia and enhancing executives' awareness of green practices. Digitalization optimizes the external environment by increasing media attention and alleviating financing constraints, thus boosting the green transformation. This study uncovers significant heterogeneity in the impact of digitalization across different types of energy firms. Notably, non-state-owned, growth-stage, and renewable energy firms show a particularly strong responsiveness to digital transformation. These findings offer relevant policy recommendations.