From bytes to blooms: tech-driven transformation and green revenues

Cao, June, Huang, Zijie and Kristanto, Ari Budi (2025) From bytes to blooms: tech-driven transformation and green revenues. Energy Economics, 144, [108312]. (doi:10.1016/j.eneco.2025.108312).

Record type: Article

Abstract

Exploiting the staggered implementation of city-level Broadband China Pilot as an exogenous increase in digital transformation, this study investigates whether and how tech-driven transformation affects firms' green revenues. Using a difference-in-differences model, we find that firms' digital transformation enhances green revenues following the implementation of this policy. We document that higher environmental regulatory intensity and enhanced environmental protection practices serve as underlying mechanisms. Further analyses reveal that this impact is more pronounced among firms experiencing overinvestment and those with higher green capabilities. Our study contributes to the net-zero framework by providing a collaboration channel between micro- and macro-level institutional mechanisms to achieve a win-win scenario between economic efficiency and environment friendliness.

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