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Electricity Infrastructure and Corporate Digital Transformation: Evidence from the Power Transmission of the Three Gorges Project in China

Year: 2026

Type: article

Abstract: Electricity infrastructure is widely regarded as a fundamental prerequisite for supporting sustainable industrial development and driving corporate digital transformation under energy constraints. Taking the quasi-natural experiment of changes in electricity supply resulting from the cross-regional power transmission of the Three Gorges Project, and using data from China’s A-share listed manufacturing companies over the period 2000 to 2023, this paper constructs a multi-period difference-in-differences model to investigate whether improvements in electricity infrastructure promote corporate digital transformation and to examine their potential role in supporting sustainable economic development. The empirical results indicate that improvements in electricity infrastructure significantly enhance the level of corporate digital transformation. In the mechanism analysis, the alleviation of financing constraints and the increase in R&D investment play important mediating roles in the process through which electricity infrastructure affects corporate digital transformation. Further heterogeneity analysis reveals that the above effects are more pronounced in non-STAR Market enterprises, labor-intensive enterprises, asset-intensive enterprises, state-owned enterprises, and regions characterized by relatively lower levels of marketization. This study reveals the intrinsic relationship between electricity infrastructure and corporate digital transformation at the micro level, provides empirical evidence for understanding how energy infrastructure supports sustainable digital transformation and enhances long-term economic resilience, and offers policy implications for promoting the coordinated development of energy security and the digital economy.

Source: Sustainability

DOI: 10.3390/su18094238

Authors: Weifeng Zhao, Jiahui Wang, Siyuan Deng, Aobo Pi

Institution: Wuhan Polytechnic University

Language: English

Topic: Digital Economy and Transformation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy, Decent work and economic growth, Climate action

Open Access status: gold

Estimated APC paid: $2,896