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Updated: Nov 5, 2025

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Digitalization and environment: how does ICT affect enterprise environmental performance?

Huwei Wen1,2, Chien-Chiang Lee3,4, Ziyu Song5

  • 1Research Center of the Central China for Economic and Social Development, Nanchang University, Nanchang, 330031, Jiangxi, China.

Environmental Science and Pollution Research International
|May 20, 2021
PubMed
Summary
This summary is machine-generated.

Industrial digitalization significantly enhances manufacturing environmental performance by improving green productivity and cleaner production technologies. This digital transformation, driven by structural and information and communications technology (ICT) effects, boosts eco-friendly innovation.

Keywords:
Environmental performanceIndustrial digitalizationInformation and communications technology (ICT)Structural effectTechnology effect

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Area of Science:

  • Environmental Science and Engineering
  • Industrial Ecology
  • Digital Transformation

Background:

  • The impact of industrial digitalization on environmental performance is not well understood, despite its growing adoption in manufacturing.
  • Existing literature lacks comprehensive analysis on the mechanisms through which digital technologies influence enterprise environmental outcomes.

Purpose of the Study:

  • To investigate the relationship between industrial digitalization and enterprise environmental performance in Chinese manufacturing.
  • To identify the transmission channels and key drivers of environmental improvements resulting from digital transformation.

Main Methods:

  • Utilized a large-scale dataset of Chinese manufacturing enterprises undergoing digital transformation.
  • Employed econometric analysis to examine the effects of industrial digitalization on environmental performance metrics.
  • Differentiated between structural and technology effects, and analyzed impacts on production scale, innovation, and productivity.

Main Results:

  • Industrial digitalization significantly improves the environmental performance of manufacturing enterprises.
  • Structural and technology effects are key transmission channels, with structural effects being the primary contributor from information and communications technology (ICT) penetration.
  • Digitalization promotes cleaner production technologies and green total factor productivity, while reducing the scale of heavy-polluting industries.

Conclusions:

  • Industrial digitalization offers a viable pathway to enhance enterprise environmental performance through cleaner production and optimized industrial structures.
  • Focusing on front-end cleaner production technologies is more effective than end-pipe treatment for environmental gains.
  • Digital transformation positively impacts green innovation and productivity, necessitating further research into its broader economic effects.