The impact of digital transformation on international carbon competitiveness: Empirical evidence from manufacturing decomposition

Trade-induced carbon transfer has emerged as a significant contributor to global carbon emissions, with international carbon competitiveness playing a pivotal role in this transfer. Based on a sample of 43 major economies from 2000 to 2014, this paper empirically examines the influence of digital transformation on the international carbon competitiveness of the manufacturing sector. The results reveal a substantial enhancement in manufacturing's international carbon competitiveness facilitated by digital transformation. Three primary mechanisms drive this enhancement: the scale effect, advancement of the forward global value chains position, and an improved energy structure. Notably, both domestic and foreign sources of digital transformation bolster the international carbon competitiveness of domestic manufacturing. Furthermore, the enabling of segmented digital industry strengthens this competitiveness, especially in publishing, programming, and broadcasting activities. This paper enriches the research on the environmental implications of digital transformation and offers insights for policymakers aiming to boost international carbon competitiveness and promote greener industrial growth.