The effect of digital infrastructure development on enterprise green transformation

Green transformation of enterprises is a key link for China to realize green development and an important path for China to achieve high-quality development. This paper utilizes panel data from Chinese A-share listed industrial enterprises from 2009 to 2021 and employs time-varying difference-in-differences (time-varying DID) model to investigate the correlation between digital infrastructure and the enterprise green transformation (EGT). Empirical research indicates that the implementation of the "Broadband China" strategy (BCS) significantly propels EGT. However, its impact is not significant in the long term. Mechanism analysis reveals that the BCS fosters EGT by stimulating green technology innovation (GTI) and alleviating financing constraints (FC). The analysis of supply chain spillover effects reveals that the implementation of the BCS can stimulate the green transformation of downstream enterprises within the supply chain. However, its impact on upstream enterprises is not significant. Heterogeneity analysis reveals that the BCS exerts a more significant effect on the green transformation of enterprises in non-heavily polluting industries, enterprises in the growth stage, and enterprises located in regions with lenient environmental regulations. This paper provides innovative insights for realizing the EGT in theory and offers empirical evidence for the improvement and promotion of the BCS in practice.