Can digital-real integration promote industrial green transformation: Fresh evidence from China's industrial sector

China is actively advancing the integration of digital and real industrial economies, fostering a mutually beneficial cycle that could potentially drive new momentum for eco-friendly industrial development. The empowering effect of digital-real integration on industrial green transformation (IGT) requires urgent exploration. Based on China's industrial sector panel data from 2010 to 2020, this paper empirically investigates the relationship between digital-real integration and IGT and delves into its internal mechanism to verify the above hypothesis. Meanwhile, it analyzes the heterogeneous effects of digital-real integration on IGT, considering variations in industrial technology levels and the sources of such integration. The results demonstrate a positive impact of digital-real integration on IGT in China. The green technology and scale effects play pivotal roles in unleashing the green benefits of digital-real integration in the industrial sector. Notably, the contribution of digital-real integration to IGT varies across industrial subsectors with distinct technology levels. There is heterogeneity in the enabling effect of digital-real integration from different sources on IGT, and the integration of digital services and the real industrial economy has yet to achieve the expected green benefits. Our findings provide new scientific evidence for managers and policymakers in developing countries like China to promote industrial digitization and sustainable growth. This work informs the future discussion on digital-real integration topics from a global context.