Digitalization, Carbon Productivity and Technological Innovation in Manufacturing-Evidence from China

Manufacturing is one of the vital carbon emission sources in China; its carbon emission reduction and carbon productivity improvement are the keys to the successful realization of "carbon peaking and carbon neutrality". This paper investigates the impact of regional manufacturing digitalization on carbon productivity based on a panel data set covering 30 provinces in China over time from 2013 to 2020. We applied the mixed Ordinary Least-Squares (OLS) regression effect model and instrumental variable method, using a mediation effect model, and identified that technological innovation is the potential transmission channel of manufacturing digitalization affecting carbon productivity. The empirical results show that: (1) Digitalization of manufacturing can effectively contribute to increased carbon productivity. (2) Technological innovation plays a partial intermediary role in the impact of carbon productivity through the digitalization of manufacturing, and there is still much room for improvement. (3) Promoting the digitalization of manufacturing will promote technological innovation, which is an important influencing factor for manufacturing enterprises to enhance technological innovation. This research provides theoretical support for achieving carbon productivity in manufacturing in the context of digital development.