Corporate green innovation in a digital economy

This study examines how a digital economy that embraces digital technology and transformation influences corporate green innovation. Our analysis of a sample of Chinese firms reveals a positive relationship between the digital economy and corporate green innovation. The digital economy stimulates firms to engage in corporate digitalization, which in turn promotes green innovation. Additionally, digitalization reduces the financial constraints of firms with better access to trade credit and lowers corporate debt costs, implying that firms with richer financial resources engage in more green innovation.