Research on the impact of diversity in financial ecosystems on new energy systems

Expediting the construction of the new energy systems is crucial to achieving an energy transition, decreasing carbon dioxide emissions, and alleviating global warming. Utilizing Chinese province panel data from 2000 to 2022, we examined the causal effect of diversity in financial ecosystems on the new energy systems and utilized instrumental variable estimates to mitigate endogeneity. We constructed a new energy systems indicator framework, employed the entropy approach to assign weights to each indicator objectively, and quantitatively assessed the level and attributes of the new energy systems. The findings indicate that diversity in financial ecosystems plays a crucial role in developing new energy systems. Diversity in financial ecosystems impacts the development of new energy systems via the consequences of technology innovation and digital effects. These effects are more concentrated in areas without external power inputs, with a long transportation history, and characterized by low bird biodiversity. The study's findings offer a viable Chinese approach for global energy transition and successful climate change mitigation.