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How does the one belt one road initiative affect the green economic growth?

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  • Jiang, Qichuan
  • Ma, Xuejiao
  • Wang, Yun

Abstract

When formulating international trade agreements, policymakers should consider not only their trade-creation effect but also their impact on the environment. This paper is an examination of whether the One Belt One Road (OBOR) Initiative contributes to green economic growth. By combining the difference-in-difference model with the propensity score matching method and conducting a series of robustness tests, we found strong evidence to support the energy-saving and emissions-reduction effects of the OBOR Initiative. The energy-saving effect was 34.5%, while the emissions-reduction effect was 36.4%. The results of various heterogeneity tests show that developing countries tend to benefit more from the OBOR Initiative than developed ones, enjoying greater trade-creation effects. We also revealed the influencing mechanism of the policy based on the results of a mediating effect analysis, and the empirical results demonstrated that technology spillover played the most significant role in reducing levels of energy consumption and carbon emissions, followed by updates to the industrial structure and the promotion of green trade among the participating countries.

Suggested Citation

  • Jiang, Qichuan & Ma, Xuejiao & Wang, Yun, 2021. "How does the one belt one road initiative affect the green economic growth?," Energy Economics, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:eneeco:v:101:y:2021:i:c:s0140988321003224
    DOI: 10.1016/j.eneco.2021.105429
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    Cited by:

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    4. Lee, Chien-Chiang & Wang, Chih-Wei & Thinh, Bui Tien, 2023. "Green development, climate risks, and cash flow: International evidence," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
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    6. Shen, Zhiyang & Zhao, Yuntian & Guneri, Fatma & Yang, Yiping & Wang, Songkai & Deng, Haiyan, 2023. "Does the rise of China promote the sustainable development of OECD countries? A geopolitical perspective," Resources Policy, Elsevier, vol. 85(PB).
    7. Wang, Banban & Lin, Ping, 2022. "Whether China's overseas energy infrastructure projects dirtier or cleaner after the belt and road initiative?," Energy Policy, Elsevier, vol. 166(C).
    8. Cheng, Si & Wang, Banban, 2023. "Impact of the Belt and Road Initiative on China's overseas renewable energy development finance: Effects and features," Renewable Energy, Elsevier, vol. 206(C), pages 1036-1048.
    9. Ahakwa, Isaac & Xu, Yi & Tackie, Evelyn Agba & Odai, Leslie Afotey & Sarpong, Francis Atta & Korankye, Benard & Ofori, Elvis Kwame, 2023. "Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity," Resources Policy, Elsevier, vol. 85(PB).
    10. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
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