How does digital transformation drive green total factor productivity? Evidence from Chinese listed enterprises

Digital transformation is a critical paradigm for advancing the in-depth integration of the digital economy and the real economy that can drive enterprises' green and low-carbon transformation. Previous research has pri-marily analyzed the relationship between digital transformation and green total factor productivity (GTFP) at the macro level; however, the impact of digital transformation on enterprises' GTFP as a force of economic growth and pollution management has been neglected. To fill this research gap, we explored the effects of digital transformation and associated micromechanisms on GTFP using a sample of Chinese A-share listed enterprises from 2004 to 2020. Furthermore, we launched a conducted heterogeneity analyses of the research themes from enterprise, industry, and province perspectives. We elicit three notable findings. (1) Digital transformation en-hances enterprise GTFP, a finding that holds after endogeneity and robustness tests, including difference-in-differences and instrumental variable methods. (2) At the enterprise level, the benefits of digital trans-formation are higher for lower-growth and state-owned enterprises. At the industry level, digital transformation in manufacturing, non-high-tech, and non-heavy polluting industries has a stronger GTFP improvement effect. At the provincial level, provinces with higher intensities of environmental regulation and intellectual property protection are more effective in improving GTFP through enterprises' digital transformation. (3) Structural optimization and green technology innovation effects are two critical paths through which digital transformation affects GTFP. This study confirms that enterprises' implementation of digital transformation strategies can achieve the benefits of performance growth, energy saving, and emissions reduction at the micro level, providing relevant insights driving digital transformation more effectively and stimulating the "digital dividend."