Does digitalization facilitate pollution and carbon emissions reduction synergies?: Evidence based on Chinese A-share manufacturing companies

Digitization has become an enabler of green development, and its joint impact on the environment has yet to be fully investigated. Using data from Chinese A-share manufacturing firms from 2013 to 2022, this paper integrated the multidimensional fixed-effects model, Entropy method, Instrumental variable model, and Moderating effect model to measure the green benefits of digitalization. Findings reveal that digital transformation significantly inhibits CO2 and pollution emissions; that is, there is an increased synergy between them. This conclusion satisfies the robustness test and the endogeneity test. Further, manufacturing firms also reinforce digital transformation's pollution and carbon reduction effects through green innovation and green investment. Heterogeneity analyses indicate that the green benefits of digitization are more pronounced for state-owned enterprises, firms with standard audit opinions, technology-intensive and capital-intensive firms, and firms located in the eastern and western. This paper considers the impact of digitization on the multidimensional environment and validates the synergistic environmental effects of the digital revolution. It provides meaningful practical guidance for the digitalization and greening of enterprises.