Tackling climate change and improving environmental sustainability: The significance of digitalization, green innovation, and hydroelectricity consumption

Abstract

Climate change threatens sustainable development, especially in fast-growing economies such as China. This study jointly examines internet penetration (digitalization), green innovation, hydroelectricity consumption, natural resource extraction, and economic growth in shaping China's climate outcomes over 1980–2021. We apply an augmented dynamic ARDL simulation framework and spectral causality tests to a composite climate change score built from eight environmental indicators. Long-run estimates show that a 1 % rise in resource extraction increases the climate score by 0.02 %, while green innovation cuts it by 0.16 % and hydroelectricity by 0.03 %. Short-run responses are directionally consistent: −0.12 % for green innovation and −0.02 % for hydroelectricity. Economic growth and digitalization aggravate climate pressures over time. Robustness diagnostics (alternative specifications and parameter stability checks) affirm these core relationships. Spectral causality reveals that resource extraction, green innovation, and economic growth drive climate outcomes at medium and long horizons, underscoring dynamic feedbacks often missed in single-factor studies. These findings broaden evidence on integrated technology–resource–energy pathways in emerging economies. Policy priority should therefore center on accelerating green innovation, scaling low-carbon power—particularly hydropower—and managing resource extraction to advance mitigation and support Sustainable Development Goal 13: Climate Action.