Ecological Indicators (Jun 2024)
Informal environmental regulation and enterprises digital transformation: A study based on the perspective of public environmental concerns
Abstract
Public environmental concern (PEC) serves as a prominent representative of informal environmental regulation, which in turn propels the high-quality economic development. It’s important to understand how enterprise digital transformation (EDT) and PEC are connected, as this connection plays a crucial role in driving strong economic growth—it can be seen as a key pathway to achieving high-quality economic development. This research examines the influence and mechanism of PEC on EDT through the analysis of data obtained from publicly traded companies in Shanghai and Shenzhen, China along with city-level PEC data covering the period from 2010 to 2021. In addition, a heterogeneity analysis was performed to examine the variations among cities, industries, and enterprises, and we obtained a total of three conclusions as follows. (1) The results of our study reveal a statistically significant positive association, indicating that an increase in PEC has a substantial impact on the development of EDT. This association remains robust even after a series of robustness tests. (2) Mechanistic analyses further support our finding. PEC encourages companies to investments in research and development (R&D), attract skilled personnel, and commit to environmental responsibilities, thus promoting EDT. (3) From the municipal viewpoint, the influence of PEC on EDT is more significant in cities with advanced digital infrastructure, greater governmental subsidies, and those located in the central and western regions. From an industrial viewpoint, the effect of PEC on EDT is more pronounced in manufacturing firms and heavily polluting industries. At the enterprise level, the beneficial impact of PEC on EDT is more evident in companies with a stronger emphasis on environmental investment, in non-state-owned enterprises, and in those with higher levels of pollution. In conclusion, this research sheds light on the significant role of PEC in driving EDT and, consequently, economic growth. The research will offer valuable insights for policymakers and stakeholders aiming to align economic progress with environmental awareness.
