The Risk of Global Environmental Change to Economic Sustainability and Law: Help from Digital Technology and Governance Regulation

Zhen Cao, Zhuiwen Lai, Muhammad Bilawal Khaskheli and Lin Wang ()
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Zhen Cao: School of Law, Hainan University, No. 58 People’s Avenue, Haikou 570228, China
Zhuiwen Lai: School of Law, Hainan University, No. 58 People’s Avenue, Haikou 570228, China
Muhammad Bilawal Khaskheli: School of Law, Hainan University, No. 58 People’s Avenue, Haikou 570228, China
Lin Wang: School of Law, Guizhou University of Finance and Economics, No. 288 Huayan Road, Guiyang 550000, China

Sustainability, 2025, vol. 17, issue 15, 1-20

Abstract: This research examines the compounding risks of global environmental change, including climate change, environmental law, biodiversity loss, and pollution, which threaten the stability of economic systems worldwide. While digital technology and global governance regulation are increasingly being proposed as solutions, their synergistic potential in advancing economic sustainability has been less explored. How can these technologies mitigate environmental risks while promoting sustainable and equitable development, aligning with the Sustainable Development Goals? We analyze policy global environmental data from the World Bank and the United Nations, as well as literature reviews on digital interventions, artificial intelligence, and smart databases. Global environmental change presents economic stability and rule of law threats, and innovative governance responses are needed. This study evaluates the potential for digital technology to be leveraged to enhance climate resilience and regulatory systems and address key implementation, equity, and policy coherence deficits. Policy recommendations for aligning economic development trajectories with planetary boundaries emphasize that proactive digital governance integration is indispensable for decoupling growth from environmental degradation. However, fragmented governance and unequal access to technologies undermine scalability. Successful experiences demonstrate that integrated policies, combining incentives, data transparency, and multilateral coordination, deliver maximum economic and environmental co-benefits, matching digital innovation with good governance. We provide policymakers with an action plan to leverage technology as a multiplier of sustainability, prioritizing inclusive governance structures to address implementation gaps and inform legislation.

Keywords: global environmental; global governance; law; economic development; digital technology; climate change; environmental pollution; sustainable development goals (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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