Does the digital economy moderate the climate vulnerability-inclusive green growth nexus? International evidence

Abstract

The intensification of climate vulnerability severely constrains the long-term viability of human societies, and the digital economy is a key pathway for mitigating its negative impacts. This study examines the impact of climate vulnerability on inclusive green growth (IGG) using cross-national panel data from 2013 to 2023 and tests the moderating effect of the digital economy. The results indicate that heightened climate vulnerability significantly inhibits IGG, and this conclusion remains robust after adjusting the model settings and sample scope and addressing endogeneity issues. Mechanistic analysis reveals that climate vulnerability primarily hinders IGG by suppressing energy structure transition and weakening social equity. Moderation effect analysis reveals that the digital economy can mitigate the adverse impacts of climate shocks on IGG. However, the panel threshold model results indicate that the moderation strength does not significantly differ on either side of the digital economy threshold value. The limited mixed regression models can effectively capture the moderating effects of the digital economy and indicate that its mitigating role continues to strengthen as the digital economy develops. This study offers policymakers critical empirical support and actionable policy insights to address climate challenges and advance IGG.