Has China's low-carbon strategy pushed forward the digital transformation of manufacturing enterprises? Evidence from the low-carbon city pilot policy

Whether a low-carbon strategy can force manufacturing enterprises to step up digital transformation is essential to the decarbonization of cities. Using China's low-carbon city pilot (LCCP) as a quasinatural experiment, this paper tests its effect on the digital transformation of manufacturing enterprises by applying the difference-in-differences (DID) method. Furthermore, this paper conducts a heterogeneity analysis and tests for influence mechanisms. The results show the following. (1) The LCCP has promoted the digital transformation of manufacturing enterprises in pilot cities, as verified by several robustness tests. (2) The promoting effect of the LCCP on digital transformation has remarkable enterprise heterogeneity, industrial heterogeneity, and regional heterogeneity. The LCCP has resulted in a stronger driving effect on the digital transformation of state-owned enterprises (SOEs), enterprises in high-carbon industries, and enterprises in financially developed areas. (3) The LCCP has promoted digital transformation by not only strengthening fiscal expenditures on science and technology (S&T) but also alleviating financing constraints. This study presents a realistic basis for refining LCCP policies and formulating incentive measures for digital transformation.