IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i19p8281-d425024.html
   My bibliography  Save this article

Country Evaluation for China’s Hydropower Investment in the Belt and Road Initiative Nations

Author

Listed:
  • Qian Luo

    (College of Water Conservancy and Hydropower Engineering, Hohai University, Nanjing 210098, China
    China Three Gorges Corporation, Beijing 100038, China)

  • Guohua Fang

    (College of Water Conservancy and Hydropower Engineering, Hohai University, Nanjing 210098, China)

  • Jian Ye

    (College of Water Conservancy and Hydropower Engineering, Hohai University, Nanjing 210098, China)

  • Min Yan

    (College of Water Conservancy and Hydropower Engineering, Hohai University, Nanjing 210098, China)

  • Chengxuan Lu

    (College of Water Conservancy and Hydropower Engineering, Hohai University, Nanjing 210098, China)

Abstract

With the implementation of China’s “Going Out” strategy and “Belt and Road Initiative” (BRI) as well as the shortage of domestic hydropower market, the scale of hydropower investment along BRI by Chinese companies has expanded rapidly. However, these countries have great differences in politics, laws, economy, hydropower potential, social development and environmental constraints. Due to the inappropriate choice of countries for investment, many failure cases have also occurred. To specifically evaluate hydropower investment in these countries, this paper proposed a six-dimensional indicator system which can represents the characteristics of hydropower investment along BRI based on the analysis of the typical cases of overseas investment by Chinese enterprises. Furthermore, a fuzzy optimal model based on the Delphi-Entropy weight was constructed to evaluate the hydropower investment of 65 countries along BRI as well as a list of countries and corresponding investment grades are proposed. The result indicates that politics and hydropower industry factors are the key determinants of choosing the countries for conducting investment while legal, economic, social and environmental factors should also be covered. In conclusion, the optimal choices for China’s hydropower investment along BRI are Russia, Pakistan, Malaysia, Kazakhstan and Indonesia and the strategy has been given accordingly. Moreover the policy recommendations from the perspective of nation and enterprise level have also been proposed.

Suggested Citation

  • Qian Luo & Guohua Fang & Jian Ye & Min Yan & Chengxuan Lu, 2020. "Country Evaluation for China’s Hydropower Investment in the Belt and Road Initiative Nations," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8281-:d:425024
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/19/8281/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/19/8281/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sangsomboon Ploywarin & Yan Song & Dian Sun, 2018. "Research on Factors Affecting Public Risk Perception of Thai High-Speed Railway Projects Based on “Belt and Road Initiative”," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    2. Shiqi Li & Maoxiang Lang & Xueqiao Yu & Mingyue Zhang & Minghe Jiang & Sangbing Tsai & Cheng-Kuang Wang & Fang Bian, 2019. "A Sustainable Transport Competitiveness Analysis of the China Railway Express in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 11(10), pages 1-30, May.
    3. Chen, Maggie Xiaoyang & Moore, Michael O., 2010. "Location decision of heterogeneous multinational firms," Journal of International Economics, Elsevier, vol. 80(2), pages 188-199, March.
    4. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 341-363, September.
    5. Leng, Zhihui & Shuai, Jing & Sun, Han & Shi, Zhiyao & Wang, Zihan, 2020. "Do China's wind energy products have potentials for trade with the “Belt and Road” countries? -- A gravity model approach," Energy Policy, Elsevier, vol. 137(C).
    6. Zhou, Na & Wu, Qiaosheng & Hu, Xiangping & Xu, Deyi & Wang, Xiaolin, 2020. "Evaluation of Chinese natural gas investment along the Belt and Road Initiative using super slacks-based measurement of efficiency method," Resources Policy, Elsevier, vol. 67(C).
    7. Ryuichi Shibasaki & Satoshi Tanabe & Hironori Kato & Paul Tae-Woo Lee, 2019. "Could Gwadar Port in Pakistan Be a New Gateway? A Network Simulation Approach in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    8. Xin Yu & Sid Suntrayuth & Jiafu Su, 2020. "A Comprehensive Evaluation Method for Industrial Sewage Treatment Projects Based on the Improved Entropy-TOPSIS," Sustainability, MDPI, vol. 12(17), pages 1-11, August.
    9. Minjie Li & Jian Wang & Yihui Chen, 2019. "Evaluation and Influencing Factors of Sustainable Development Capability of Agriculture in Countries along the Belt and Road Route," Sustainability, MDPI, vol. 11(7), pages 1-28, April.
    10. Jiahai Yuan & Yurong Zeng & Xiaoxuan Guo & Yu Ai & Minpeng Xiong, 2018. "Electric Power Investment Risk Assessment for Belt and Road Initiative Nations," Sustainability, MDPI, vol. 10(9), pages 1-21, August.
    11. Reid W Click, 2005. "Financial and political risks in US direct foreign investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(5), pages 559-575, September.
    12. Jelena M. Andrić & Jiayuan Wang & Ruoyu Zhong, 2019. "Identifying the Critical Risks in Railway Projects Based on Fuzzy and Sensitivity Analysis: A Case Study of Belt and Road Projects," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    13. Shuai, Jing & Chen, Chien-fei & Cheng, Jinhua & Leng, Zhihui & Wang, Zihan, 2018. "Are China's solar PV products competitive in the context of the Belt and Road Initiative?," Energy Policy, Elsevier, vol. 120(C), pages 559-568.
    14. Xiaodan Wang & Zhengyu Yang, 2019. "Application of Fuzzy Optimization Model Based on Entropy Weight Method in Atmospheric Quality Evaluation: A Case Study of Zhejiang Province, China," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    15. Eun-Sung Chung & Kwangjae Won & Yeonjoo Kim & Hosun Lee, 2014. "Water Resource Vulnerability Characteristics by District’s Population Size in a Changing Climate Using Subjective and Objective Weights," Sustainability, MDPI, vol. 6(9), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kałuża, Tomasz & Hämmerling, Mateusz & Zawadzki, Paweł & Czekała, Wojciech & Kasperek, Robert & Sojka, Mariusz & Mokwa, Marian & Ptak, Mariusz & Szkudlarek, Arkadiusz & Czechlowski, Mirosław & Dach, J, 2022. "The hydropower sector in Poland: Barriers and the outlook for the future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuan, Jiahai & Li, Xinying & Xu, Chuanbo & Zhao, Changhong & Liu, Yuanxin, 2019. "Investment risk assessment of coal-fired power plants in countries along the Belt and Road initiative based on ANP-Entropy-TODIM method," Energy, Elsevier, vol. 176(C), pages 623-640.
    2. Qiyong Chen & Shiyu Chen & Changfeng Shi & Qinghua Pang & Ang Li, 2021. "Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road," Natural Resources Forum, Blackwell Publishing, vol. 45(4), pages 464-483, November.
    3. Bega, François & Lin, Boqiang, 2023. "China's belt & road initiative energy cooperation: International assessment of the power projects," Energy, Elsevier, vol. 270(C).
    4. Chen, Maggie Xiaoyang & Lin, Chuanhao, 2020. "Geographic connectivity and cross-border investment: The Belts, Roads and Skies," Journal of Development Economics, Elsevier, vol. 146(C).
    5. Mayer, T. & Mejean, I. & Nefussi, B., 2010. "The location of domestic and foreign production affiliates by French multinational firms," Journal of Urban Economics, Elsevier, vol. 68(2), pages 115-128, September.
    6. Pamela Bombarda, 2016. "Firm heterogeneity and the localization of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 1-26, March.
    7. Nicholas A. Phelps & Andrew Wood, 2018. "Promoting the global economy: The uneven development of the location consulting industry," Environment and Planning A, , vol. 50(6), pages 1336-1354, September.
    8. Jung Hur & Hea-Jung Hyun, 2011. "Who Goes Where and How? Firm Heterogeneity in the Choice of FDI Type and Location," Working Papers 1105, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    9. Nerdjes Bennani & Samy Mezhoud, 2023. "Risk assessment of several hazards along railway network using AHP incorporated into GIS," Technium Social Sciences Journal, Technium Science, vol. 39(1), pages 452-464, January.
    10. Manal Ayyad Dhif Alshammry & Saqib Muneer, 2023. "The influence of economic development, capital formation, and internet use on environmental degradation in Saudi Arabia," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    11. Lin, Boqiang & Bega, François, 2021. "China's Belt & Road Initiative coal power cooperation: Transitioning toward low-carbon development," Energy Policy, Elsevier, vol. 156(C).
    12. Aurélien Saussay & Misato Sato, 2018. "The Impacts of Energy Prices on Industrial Foreign Investment Location: Evidence from Global Firm Level Data," Working Papers hal-03475473, HAL.
    13. Agnieszka Bekisz & Magdalena Kowacka & Michał Kruszyński & Dominika Dudziak-Gajowiak & Grzegorz Debita, 2022. "Risk Management Using Network Thinking Methodology on the Example of Rail Transport," Energies, MDPI, vol. 15(14), pages 1-19, July.
    14. Hao Cai & Ling Liang & Jing Tang & Qianxian Wang & Lihong Wei & Jiaping Xie, 2019. "An Empirical Study on the Efficiency and Influencing Factors of the Photovoltaic Industry in China and an Analysis of Its Influencing Factors," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    15. Joanna Godlewska & Edyta Sidorczuk-Pietraszko, 2019. "Taxonomic Assessment of Transition to the Green Economy in Polish Regions," Sustainability, MDPI, vol. 11(18), pages 1-25, September.
    16. Yang, Jie & Ma, Jieqiong & Zhang, Yong & Hong, JungHwa, 2018. "With whom should you have dinner? A multidimensional framework for understanding political ties in China," Business Horizons, Elsevier, vol. 61(6), pages 891-898.
    17. Chen, Maggie Xiaoyang & Moore, Michael O., 2010. "Location decision of heterogeneous multinational firms," Journal of International Economics, Elsevier, vol. 80(2), pages 188-199, March.
    18. Fangzhong Qi & Leilei Zhang & Kexiang Zhuo & Xiuyan Ma, 2022. "Early Warning for Manufacturing Supply Chain Resilience Based on Improved Grey Prediction Model," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    19. Hisamitsu Saito, 2015. "Firm Heterogeneity, Multiplant Choice, And Agglomeration," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 540-559, September.
    20. Larimo, Jorma & Arslan, Ahmad, 2013. "Determinants of foreign direct investment ownership mode choice: Evidence from Nordic investments in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 232-263.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8281-:d:425024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.