Relationship between the digital economy, resource allocation and corporate carbon emission intensity: new evidence from listed Chinese companies

Abstract Many studies have focused on the relationship between the digital economy and carbon emissions at the macro level. However, there is a relative dearth of research on this relationship at the micro level. In this study, we determined the impact of the digital economy on the carbon emissions of individual companies and the mediating role of resource allocation in this relationship using data from listed Chinese manufacturing companies between 2011 and 2019. This analysis yielded three main findings. First, based on firm-level carbon emissions and the borderless organization theory, we found that the digital economy significantly reduced corporate carbon emission intensity. Second, the digital economy reduced resource misallocation and improved resource efficiency, which in turn reduced corporate carbon emission intensity. Third, market drivers and government regulations improved and hindered the ability of the digital economy to reduce corporate carbon emission intensity, respectively. These findings provide evidence for the need for government investment in the development of digital technologies and corporate digitization; the use of digital technologies by businesses to improve resource and energy efficiency; and minimal government regulation of the digital economy in favor of self-regulation through market forces. These measures are important for economic transformation and the achievement of carbon neutrality in emerging developing countries, including China.