Roadmap to achieving sustainable development: Does digital economy matter in industrial green transformation?

Abstract The rapid advancements in the digital economy have created numerous opportunities and solutions for industrial green transformation. However, the complex relationship between these two has received relatively less attention. Therefore, this study analyses how the digital economy impacts industrial green transformation across 30 Chinese provinces. The empirical findings highlight the digital economy's significant role in driving industrial green transformation. Within this dynamic framework, two crucial operational mechanisms have been identified: heightened public awareness of environmental issues and the vigorous innovation of green technologies. It becomes evident that the digital economy can energize and sustain the momentum of industrial green transformation. Notably, this influence is most pronounced in eastern‐central China. However, its impact in western China appears relatively weaker, especially at higher quantiles. We observe a strong correlation between the evolution of the digital economy and industrial green transformation in terms of space and time. Higher spatiotemporal regression coefficients are primarily found in areas south of the Hu line, while lower values are more common in the northern regions. These findings provide insights into how the digital economy can be strategically applied to drive industrial green transformation.