Renewable energy, economic complexity and biodiversity risk: New insights from China

Abstract

With the escalating worries of biodiversity losses caused by pollution, renewable energy has gained momentum as a substitute for fossil fuels to savage planet earth. This study aims to investigate the effect of renewable energy, economic complexity, and non-renewable energy on biodiversity risk in China using the Bootstrap ARDL from 1990 to 2018; different from the conventional proxies such as CO2 and EF, we employed the biodiversity habitat index, which measures habitat loss, degradation and fragmentation on retention of terrestrial biodiversity. The analysis revealed that both renewable energy and economic complexity enhanced sustainable biodiversity in China in the short and long term. However, non-renewable energy was found to augment biodiversity risk in China. Policymakers should strive to promote and invest in environmentally friendly energy and economic complexity through research and development channels.