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Renewable energy integration in the Belt and Road Initiative: Government expenditure, green finance, and economic growth

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  • Hua, Yutao
  • Tong, Tianjie

Abstract

China is leading in incorporating renewable energy into the Belt and Road Initiative (BRI), a vital first step toward sustainable development. From 2013 to 2023, this paper investigates how government expenditure, green finance, and economic development interact to support renewable energy within the BRI framework. This study especially catches the asymmetric and nonlinear impacts of green financing and renewable energy infrastructure investments—such as solar, wind, and hydropower—on economic growth and environmental sustainability using the Quantile Autoregressive Distributed Lag (QARDL) model. The results show that government subsidies and green financial instruments such sustainable loans and green bonds and loans have greatly hastened the shift to low-carbon energy sources. Furthermore, the QARDL approach distinguishes this study from standard methods by offering a sophisticated knowledge of the short- and long-term dynamics spanning several quantiles. The outcomes underline the need for international coordination among BRI countries and fiscal policy alignment to maximize the economic and environmental benefits of renewable energy. Under the BRI, this paper presents policy suggestions to improve the efficiency of green finance in reaching long-term sustainability objectives.

Suggested Citation

  • Hua, Yutao & Tong, Tianjie, 2026. "Renewable energy integration in the Belt and Road Initiative: Government expenditure, green finance, and economic growth," Renewable Energy, Elsevier, vol. 256(PC).
    • Handle: RePEc:eee:renene:v:256:y:2026:i:pc:s0960148125016441
    DOI: 10.1016/j.renene.2025.123980
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