Can digital transformation deliver the dual benefits of emissions reduction and efficiency gains?

This study investigates the green economic benefits of digital transformation in reducing carbon emission intensity and improving energy efficiency (Emission Reduction and Efficiency Gains, ER&EG), in alignment with the philosophy of Chinese modernization. Using panel data from 30 Chinese provinces spanning 2011–2023, empirical tests are conducted through two-way fixed effects, mediation effect, and spatial Durbin models. The findings indicate that: ① Digital transformation reduces regional carbon emission intensity while simultaneously boosting energy efficiency, yielding a “dual dividend” of ER&EG. This conclusion remains valid after endogeneity treatment and robustness tests. ② The impact of digital transformation on ER&EG varies across geographic locations and development patterns. Southern regions exhibit a more pronounced ER effect, while northern regions show a stronger EG effect. Resource-based regions experience EG without ER. ③ Industrial structure upgrading serves only as an intermediary mechanism for the ER effect of digital transformation, whereas green innovation acts as the intermediary mechanism for both ER&EG. ④ Digital transformation not only improves local ER&EG but also generates positive spatial spillovers to neighboring regions. The study recommends continuing to advance digital transformation and intelligent upgrading while paying attention to inter-regional development disparities. This will drive the transformation and upgrading of traditional industries and enhance green innovation, forming a regional synergy for digital transformation to achieve the dual benefits of ER&EG for the whole society.