Enhancing energy conservation and carbon emission reduction synergies through digital technology: Firm-level evidence from China

Achieving synergies between energy conservation (EC) and carbon emission reduction (CER) at the firm level is essential for addressing global energy challenges and supporting the Sustainable Development Goals (SDGs). This study explores the role of digital technology (DT) in driving EC-CER synergies, using panel data from 4165 Chinese A-share listed firms (2010-2022). Drawing on upper echelons theory and two-way fixed-effects regression analysis, we demonstrate that DT significantly enhances the combined impact of EC and CER. A Chief Digital Officer (CDO) further strengthens this effect. Mechanism analysis reveals that green technological innovation (GTI) and improved environmental, social, and governance (ESG) performance are critical pathways. Heterogeneity analysis shows more substantial synergies in non-state-owned enterprises and firms outside eastern regions. These findings provide empirical evidence of DT's role in advancing energy conservation and sustainability, offering actionable insights for corporate strategies and policy development.