From bytes to blooms: Tech-driven transformation and green revenues
利用宽带中国试点政策作为外生冲击，研究发现企业数字化转型能显著提升绿色收入，且环境监管强度和环保实践是重要机制。
Exploiting the staggered implementation of city-level Broadband China Pilot as an exogenous increase in digital transformation, this study investigates whether and how tech-driven transformation affects firms' green revenues. Using a difference-in-differences model, we find that firms' digital transformation enhances green revenues following the implementation of this policy. We document that higher environmental regulatory intensity and enhanced environmental protection practices serve as underlying mechanisms. Further analyses reveal that this impact is more pronounced among firms experiencing overinvestment and those with higher green capabilities. Our study contributes to the net-zero framework by providing a collaboration channel between micro- and macro-level institutional mechanisms to achieve a win-win scenario between economic efficiency and environment friendliness. • Digital transformation has a positive impact on firms' green revenues. • This impact is more pronounced in firms under intensive regulation and environmental protection. • Collaboration channel between micro- and macro-level institutional mechanisms result in a win-win scenario between economy and environment.