How does digital transformation affect green innovation performance? Evidence from China

Whether digital transformation can empower green innovation performance improvement is an important proposition for achieving low-carbon transformation and sustainable development. Based on a comprehensive index of digital transformation, this paper employs provincial panel data to investigate the impact of digital transformation on green innovation performance in China during 2012–2020 by using the spatial Durbin model, mediating effect model and panel threshold model. The results show that digital transformation has a significant promotion effect on green innovation performance in local and spatially related regions, and this effect can be achieved through green technological process and green financial development. Digital transformation has a nonlinear spatial spillover effect on green innovation performance. In addition, the spatial effects of digital transformation are influenced by development stage and geographical location. The government should seize the strategic opportunity of digital transformation and promote the deep integration of digital transformation and green innovation.