Selecting a sample of 1,284 listed companies in Shanghai and Shenzhen A-shares from 2007 to 2020, the article explores the impact of digital transformation on firm value and further examines the moderating role of economic policy uncertainty in the development process of digital transformation. Digital transformation promotes enterprise value through the transmission of operating cost mechanism and financing constraint mechanism. Therefore, digital transformation should be vigorously promoted, environmental regulation should be improved, and the construction of digital infrastructure and environmental policies should be facilitated to help achieve the ‘dual carbon’ goal.