The Impact of Environmental Tax on Corporate Digital Transformation: Evidence from Chinese Listed Companies

Environmental tax is a key market-based instrument for promoting sustainability and reshaping corporate strategy. Using the panel data of Chinese listed firms from 2010 to 2023, this study employs text mining to measure digital transformation and examines the impact of environmental tax on corporate digitalization. The results show that environmental tax significantly promotes digital transformation. The mechanism analyses reveal that green technology innovation and ESG performance serve as important transmission channels. Furthermore, the effect is positively moderated by regional marketization, environmental information disclosure, and low-carbon city policies. The heterogeneity analyses indicate stronger effects in economically developed regions and firms with greater resource endowments. The additional analysis demonstrates that environmental tax enhances both total factor productivity and green governance performance through accelerating digital transformation, achieving a synergistic green–digital transition. This study provides empirical evidence on how market-based environmental policies can foster corporate digital transformation as a pathway toward sustainable development.