Empowering green growth: The role of corporate digital transformation in boosting renewable energy investment in China

While some research has examined the determinants of renewable energy investment (REI), the role of corporate digital transformation (CDT) within this domain remains underexplored. Addressing this gap, our study investigates the influence of CDT on REI within the context of China's shift towards a sustainable energy structure. Utilizing a dataset comprising renewable energy companies listed on China's A-share market from 2007 to 2022, we conduct a thorough theoretical and empirical analysis. The findings reveal that CDT significantly boosts REI, with a 1 % increase in digital transformation correlating with a 0.26 % rise in REI. This relationship is further confirmed through robustness tests. Our mechanism analysis elucidates that CDT facilitates REI by diminishing information asymmetry, alleviating financing constraints, and fostering technological innovation. Importantly, the digital economy policy is found to markedly strengthen the positive impact of CDT on REI. Additionally, heterogeneity analysis indicates a more pronounced effect of CDT on REI among state-owned companies, non-high-tech companies, and companies in their growth and maturity stages. This study contributes valuable insights into leveraging CDT to enhance REI, thereby offering both theoretical and practical implications for fostering sustainable growth through digitalization and renewable energy investment.