Can industrial agglomeration affect biodiversity loss?

Lu Xing and Shuhong Wang

Energy & Environment, 2025, vol. 36, issue 4, 1824-1848

Abstract: Reducing the rate of species extinction and protecting biodiversity are major international concerns. The loss of biodiversity is closely related to international trade as an inevitable result of industrial agglomeration and improvements in green economy efficiency. In contrast to previous studies on biodiversity loss from the perspectives of deforestation, hunting, and fire, this study examines biodiversity loss from an international trade perspective, calculates the biodiversity footprint of each country as an indicator of biodiversity loss, and innovatively elaborates on the theoretical mechanisms of industrial agglomeration, green economy efficiency, and biodiversity loss. An empirical analysis used panel data from 148 countries from 2006 to 2020. This study identifies that industrial agglomeration directly and indirectly aggravates biodiversity loss through green economy efficiency, which mediates the relationship between industrial agglomeration and biodiversity loss. The effects of industrial agglomeration and green economy efficiency on biodiversity loss driven by export trade in developed and developing countries are consistent with the benchmark test results. The effect of industrial agglomeration on green economy efficiency is positive in developed countries and vice versa in developing countries. By region, green economy efficiency can significantly mitigate the embodied biodiversity loss in the export trade in Asia, Africa, and North America, whereas its influence in Europe and North America is insignificant. This study extends the perspective of biodiversity research from the natural to economic fields, delves into the underlying economic causes of the current state of trade-driven biodiversity loss, and provides important evidence for reducing biodiversity losses caused by international trade.

Keywords: Industrial agglomeration; green economy efficiency; biodiversity loss; mediating effects; trade (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:36:y:2025:i:4:p:1824-1848

DOI: 10.1177/0958305X231200575

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