Energy taxation, urbanization, and eco-innovation as drivers of biodiversity protection during supply chain disruptions in France: evidence from wavelet quantile cointegration

Abstract

Biodiversity loss has profound impacts on environmental sustainability and a potentially destabilizing effect on the economy, yet few studies have considered the interaction between supply chain shocks and fiscal and innovation-based policies to affect biodiversity from distributional and time–frequency perspectives. This research seeks to examine the influence of supply chain shocks, taxation, human capital, urbanization, and eco-innovation on biodiversity in France between 1990Q1 and 2021Q4. To fill this gap, this research uses a wavelet-based quantile approach, Wavelet Quantile Cointegration (WQC), and Wavelet Granger Causality (WGC) to examine dynamic interactions at different time and distributional levels. Our results show that biodiversity is vulnerable to supply chain disruptions, burdened by energy taxation, and boosted by eco-innovation. Human capital positively impacts biodiversity in the long term, while urbanization negatively impacts it unless urban planning offers a solution. This highlights the importance of a comprehensive approach that includes fiscal, innovation, human capital, and urban planning measures to boost biodiversity resilience.