Advancing Environmental Innovation and Digital Integration in China's Mining Industry

ABSTRACT This study examines the relationship between environmental innovation and digital integration in improving sustainability performance within China's mining industry, a key global resource supplier facing significant environmental challenges. Using firm‐level panel data from 2020 to 2022, sourced from the China National Bureau of Statistics, the Ministry of Industry and Information Technology, corporate sustainability disclosures and patent databases, we employ a dynamic panel model estimated via the generalised method of moments (GMM) to address endogeneity concerns. The findings reveal that environmental innovation significantly enhances sustainability performance by reducing emissions, improving energy efficiency and optimising waste management. However, digital integration alone shows a negative impact, suggesting that its benefits may not inherently align with environmental objectives. Notably, the interaction between environmental innovation and digital integration demonstrates a synergistic effect, where digital tools enhance the effectiveness of green innovations. Policy support further strengthens this relationship, highlighting the importance of subsidies, tax incentives and regulatory measures in driving sustainability. These insights provide valuable guidance for policymakers and industry stakeholders to align digital transformation with environmental goals, ensuring long‐term sustainability in resource‐intensive industries. Our study contributes to the theoretical and empirical understanding of innovation‐technology interactions in the mining sector, offering broader implications for global sustainability transitions.