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Digital Technology and Low-Carbon Transition: Why Green Investment Is Not the Straightforward Bridge It Seems

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Digital technologies are now widely viewed as key enablers of low-carbon development, with expectations that smarter systems will naturally lead to cleaner production, better resource management, and improved climate outcomes. A new empirical study examining 31 Chinese provinces over the period 2015–2024 provides important evidence to test this assumption. Published in Sustainability, the research uses two-way fixed effects models, instrumental variable estimation, and mediation analysis to assess how digital transformation interacts with environmental performance. The study finds a strong positive relationship between digital technology adoption and low-carbon transition outcomes. Regions with higher levels of digitalization consistently demonstrate better environmental performance,…

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