Impact of Sustainable Energy, Fossil Fuels and Green Finance on Ecosystem: Evidence From China

Abstract

The adoption of sustainable energy has increased as a substitute for petroleum derivatives due to growing concerns about environmental degradation caused by pollution and non-renewable energy sources. This study aims to investigate the impact of sustainable energy, green finance, and fossil fuels on the ecology of China. Instead of using traditional intermediaries like CO2 and EF, we employed the ecosystem habitat index to evaluate the conservation of terrestrial ecosystems. This index measures the extent of habitat destruction, deterioration, and fragmentation. The research demonstrated that implementing ecological power and green finance in China has enhanced the country's ability to safeguard and enhance its ecosystem in the short and long term. Furthermore, the findings suggest that using non-renewable energy sources in China has heightened the risk to biodiversity and the ecosystem. The analysis indicates that prioritizing green funding and renewable energy sources is crucial for policymakers, legislators, and investors to safeguard and enhance ecosystem diversity. © 2024 Elsevier B.V., All rights reserved.