Can industrial intelligence promote green transformation? New insights from heavily polluting listed enterprises in China

The main challenge for sustainable development in China lies in promoting the green transformation of enterprises. Industrial intelligence provides a novel avenue for this shift towards sustainability. This study uses a database of Chinese A-share listed companies from 2012 to 2019, focusing on 813 high-polluting firms, to examine the impact of industrial intelligence on green transformation through a two-way fixed effects model. The findings reveal that industrial intelligence significantly facilitates the green transition of businesses; however, these effects substantially vary across various businesses. Honestly, state-owned enterprises, manufacturing sectors, and energy production and supply industries documented more pronounced impacts. Government interference hinders the positive effects of industrial intelligence on green transformation, while marketization enhancement has a positive moderating effect. In contrast, the financial market's moderating effect is negligible. It suggests that governments would increase the use of industrial intelligence, reduce government involvement, optimize financial markets, and enhance marketization to encourage green development in firms.