The role of biodiversity and energy transition in shaping the next techno-economic era

Abstract

Destructive extreme weather caused by climate change causes severe biodiversity loss, prompting us to accelerate the energy transition to net-zero emissions to achieve green sustainability goals. Thus, this paper aims to examine the relationship between biodiversity risks and the energy transition. We choose to use four indicators—carbon emissions (COE), the energy financial market (COE), climate policy uncertainty (CPU), and the world production industry (WPI)—to characterize the energy transition process and use newly constructed global biodiversity attention indicator (GBAI) to characterize biodiversity risks. We find a significant feedback relationship between the GBAI and the COE (CPU), which also confirms the close connection between climate and biodiversity. Second, we find a long-term feedback mechanism between the GBAI and COE (CPU\\WPI), but only the GBAI and the COE have a feedback mechanism in the short term. Finally, the impact of the GBAI on the COE (CPU) occurs over a short period, while the impact of the COE (WPI) on the GBAI occurs over multiple periods. Therefore, these detectable feedback relationships prompt us to adjust short- and long-term environmentally friendly policies related to climate and carbon emissions.