Digital Transformation and Carbon Intensity: Evidence from Chinese Tourism Companies

Abstract

The flourishing of the tourism market generates gigantic carbon emissions. It is imperative for tourism companies to take action to achieve decarbonization. The emergence of digital technology is gradually becoming an important strategic path for global corporations’ technological evolution. Undoubtedly, digital tools provide a fresh opportunity for tourism companies to reduce their carbon footprint. Realizing the positive interaction between digitization and greenization is essential for tourism companies to achieve high-quality development. Aiming to clarify the relationship between digital transformation and company carbon intensity in tourism companies, this study analyzes the influence and mechanism of digital transformation on tourism companies’ carbon intensity using data from Chinese A-share listed tourism companies over the period 2005–2020. With the help of textual analysis and high-dimensional fixed effects model, this paper builds a proxy for digital transformation and further tests the causal link between digital transformation and company carbon intensity. The findings indicate that digital transformation significantly reduces the carbon intensity of tourism companies. Alleviating managerial myopia, attracting external resources, and fostering a collaborative culture are three mechanisms through which digital transformation can exert its carbon reduction efficacy. The heterogeneity analysis reveals that this effect is more prominent among state-owned tourism companies, companies with greater board diversity, or companies situated in more favorable business environments. This paper makes three contributions. First, this paper broadens the exploration of how digital advancements affect tourism, discussing the relationship between digital transformation and the carbon intensity of tourism companies. Second, this paper looks beyond a macro perspective commonly used in tourism carbon emission research, undertaking the research at the micro level, filling the research gap in tourism companies’ carbon performance. Third, from the aspect of informational effect, this paper provides the mechanism between digital transformation and tourism company carbon intensity creatively. The conclusions offer empirical insights to assist tourism companies in effectively fulfilling their environmental commitments in the digital era. Meanwhile, this paper also provides a useful decision-making basis for the government to promote tourism companies’ decarbonization transformation. From the company perspective, tourism companies should take digitalization seriously, fully exploiting the environmental benefits of digital transformation. From the government perspective, local government should further improve the environment for company development, supporting tourism companies’ digital transformation with unremitting efforts.