The non-linear impact of policy uncertainty on green transformation: Does digital technology matter?

This research analyzes data from publicly listed manufacturing companies from 2008 to 2024 to investigate the impact of economic policy uncertainty ( EPU ) on corporate green transformation ( GT ). Results indicate an “inverted U-shaped” relationship between EPU and GT . Fiscal policy uncertainty plays the primary role in this relationship. Furthermore, this effect is more pronounced in high-pollution firms and companies with high corporate governance. Additionally, digital economy ( DEL ) significantly mitigates this effect. Further analysis reveals that this buffering effect is asymmetrical, acting more effectively for non-heavy polluting enterprises and firms with high corporate governance levels. These findings enrich the literature on GT and provide empirical evidence for policymakers to formulate differentiated industrial policies, as well as for corporations to leverage digital tools to build strategic resilience against macroeconomic risks.