The heterogeneous effects of green finance on biodiversity conservation

This study examines how China’s Green Finance Reform and Innovation Pilot Zones affect urban biodiversity using city-level bird observation data from 2012 to 2020. Adopting a quasi-natural experiment and difference-in-differences method, we assess the policy’s impacts. The results show that green finance policies notably raise overall bird species richness. Such ecological gains mainly stem from sustainable agriculture development, industrial green upgrading and rising public environmental awareness.Policy effects differ across bird species: common and migratory birds benefit greatly, whereas endangered species see no significant changes. This reveals general green finance policies have limited effects on protecting vulnerable wildlife, calling for targeted financial tools. Overall, the study proves financial policies incorporating biodiversity goals bring tangible ecological benefits, offering references for balancing economic growth and biodiversity conservation.