Green investment and digital innovation for a low-carbon energy transition

This study employs provincial panel data from China (2010–2020) to empirically analyze the role of green investment in driving the low-carbon energy transition (LCET). Using systematic GMM and mediation effect models, the analysis highlights both the direct effects of green investment and the moderating role of digital technologies. Results show that green investment significantly boosts renewable energy adoption: a 1 % rise in green investment increases the renewable energy consumption share by 1.852 % and the renewable energy production share by 3.807 %. Digital technologies further amplify these effects, serving as a critical transmission mechanism that strengthens the link between investment and transition outcomes. Heterogeneity tests reveal that regions with more advanced infrastructure achieve greater benefits from green investment. By examining both the impact and mechanism of green investment, this study fills an important research gap and provides policy insights for developing countries advancing sustainable energy transitions.