Going “green trade”: Assessing the impact of digital technology application on green product export

Under the background of the rapid integration of artificial intelligence and the digital economy, digital technology pursues both economic growth gains and sustainable development. Based on the data of Chinese listed firms, this study analyzes the impact of digital technology application on the firms’ green product export. We find that digital technology application significantly increases the green product export after performing robustness and endogeneity tests. This promotion effect is attributed to the reduced cost effect, technology effect, and market expansion effect. Our heterogeneity findings are more significant for firms in non-heavily polluting industry, state-owned firms and high environmental investment firms. Further evidence shows that the export effect of green products is more prominent in regions with strict environmental regulation, developed digital infrastructure, and strong intellectual property protection. Our findings contribute to the literature by enriching the implications of digital technology in green product export and strengthening the viability of green trade.