IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i19p8640-d1758365.html

The Impact of Coordinated Two-Way FDI Development on Carbon Emissions in Belt and Road Countries: An Empirical Analysis Based on the STIRPAT Model and GMM Estimation

Author

Listed:
  • Linyue Li

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 102206, China
    Claremont Institute for Economic Policy Studies, Claremont, CA 91711, USA)

  • Yikai Wang

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 102206, China)

Abstract

The Belt and Road Initiative (BRI) promotes significant cross-border investment, raising critical questions about its environmental consequences, particularly regarding carbon emissions. This paper uses panel data from 47 countries that participated in the “Belt and Road Initiative” earlier from 2000 to 2020 to conduct theoretical analysis and empirical research on the relationship between the coordinated development of two-way FDI and carbon emission intensity, dividing it into scale effect, technology effect and structure effect. The coordinated development of two-way FDI can have an increasing or decreasing impact on carbon emission intensity through these three effects. The main findings of this paper are as follows: (1) The improvement of the degree of coordinated development of two-way FDI significantly reduces carbon emission intensity. (2) The improvement of the degree of coordinated development of two-way FDI can enhance the level of technological innovation, while the improvement of the level of technological innovation will increase carbon emission intensity, thereby reducing the carbon emission reduction effect of the coordinated development of two-way FDI. (3) The improvement of the degree of coordinated development of two-way FDI can reduce carbon emission intensity by promoting the upgrading of industrial structure. Based on the above conclusions, this paper puts forward the following suggestions for the subsequent development of countries along the “Belt and Road”: (1) Further increase two-way FDI and promote the coordinated development of two-way FDI. (2) Promote the upgrading of industrial structure and the green transformation of technology. (3) Increase economic freedom to provide a good environment for economic development.

Suggested Citation

  • Linyue Li & Yikai Wang, 2025. "The Impact of Coordinated Two-Way FDI Development on Carbon Emissions in Belt and Road Countries: An Empirical Analysis Based on the STIRPAT Model and GMM Estimation," Sustainability, MDPI, vol. 17(19), pages 1-25, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8640-:d:1758365
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/19/8640/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/19/8640/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ying Nie & Qingjie Liu & Rong Liu & Dexiao Ren & Yao Zhong & Feng Yu, 2022. "The Threshold Effect of FDI on CO 2 Emission in Belt and Road Countries," IJERPH, MDPI, vol. 19(6), pages 1-20, March.
    2. Aco Benović & Miroslav Miškić & Vladan Pantović & Slađana Vujičić & Dejan Vidojević & Mladen Opačić & Filip Jovanović, 2025. "Assessment of the Impact of Solar Power Integration and AI Technologies on Sustainable Local Development: A Case Study from Serbia," Sustainability, MDPI, vol. 17(15), pages 1-23, July.
    3. Ihtisham ul Haq & Bahtiyar Mehmed & Sisira Kumara Naradda Gamage & Piratdin Allayarov & Dilawar Khan & Zeeshan Zaib Khattak, 2022. "Nexus between export variety and carbon emissions in Pakistan: The role of FDI and technological development," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-16, January.
    4. Jeongmi Ga & Jaewoo Bong & Myeongjun Yu & Minjung Kwak, 2025. "Digital Enablers of Sustainability: Insights from Sustainable Development Goals (SDGs) Research Mapping," Sustainability, MDPI, vol. 17(15), pages 1-27, August.
    5. Lee, Chien-Chiang & Zhao, Ya-Nan, 2023. "Heterogeneity analysis of factors influencing CO2 emissions: The role of human capital, urbanization, and FDI," Renewable and Sustainable Energy Reviews, Elsevier, vol. 185(C).
    6. Sorrell, Steve, 2009. "Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency," Energy Policy, Elsevier, vol. 37(4), pages 1456-1469, April.
    7. Zeki Keşanlı & Feriha Dikmen Deliceırmak & Mehdi Seraj, 2025. "The Impact of Technology, Economic Development, Environmental Quality, Safety, and Exchange Rate on the Tourism Performance in European Countries," Sustainability, MDPI, vol. 17(15), pages 1-18, August.
    8. Walter Antonio Abujder Ochoa & Angela Gabriela Torrico Arce & Alfredo Iarozinski Neto & Mayara Regina Munaro & Oriana Palma Calabokis & Vladimir A. Ballesteros-Ballesteros, 2025. "Interlinking Urban Sustainability, Circular Economy and Complexity: A Systematic Literature Review," Sustainability, MDPI, vol. 17(15), pages 1-26, August.
    9. Muhammad Uzair Ali & Ying Wang, 2024. "Does the Participation Degree in Global Value Chains Influence Carbon Emission Transfer Through International Trade in Belt and Road Countries?," Foreign Trade Review, , vol. 59(3), pages 369-388, August.
    Full references (including those not matched with items on IDEAS)

    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. Wen, Chen & Xing, Yuhang & Wang, Tao & Liao, Sheng & Gao, Ke, 2025. "How do green supply chain management and renewable energy consumption influence carbon emissions in China and India? A comparative analysis," Energy Economics, Elsevier, vol. 143(C).
    2. Xi Liu & Yugang He & Renhong Wu, 2024. "Revolutionizing Environmental Sustainability: The Role of Renewable Energy Consumption and Environmental Technologies in OECD Countries," Energies, MDPI, vol. 17(2), pages 1-21, January.
    3. Steffen Dalsgaard, 2022. "Can IT Resolve the Climate Crisis? Sketching the Role of an Anthropology of Digital Technology," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    4. Catalin VRABIE, 2024. "Guvernarea electronică 3.0: Un model AI de soluționare automatizată a petițiilor," Smart Cities International Conference (SCIC) Proceedings, Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration, vol. 12, pages 9-28, september.
    5. Turner, Karen, 2012. "'Rebound' effects from increased energy efficiency: a time to pause and reflect," Stirling Economics Discussion Papers 2012-15, University of Stirling, Division of Economics.
    6. Florian Fizaine & Victor Court, 2016. "The energy-economic growth relationship: a new insight from the EROI perspective," Working Papers 1601, Chaire Economie du climat.
    7. Donglan Zha & Qian Chen & Jaume Freire González, 2023. "The Gap between Expectations and Reality: Assessing the Water Rebound Effect in Chinese Agriculture," Working Papers 1415, Barcelona School of Economics.
    8. El Tinay, Hassan & Schor, Juliet B., 2025. "Do economists think about climate change and inequality? Semantic analysis and topic modeling of top five economics journals," Ecological Economics, Elsevier, vol. 232(C).
    9. Charlier, Dorothée, 2015. "Energy efficiency investments in the context of split incentives among French households," Energy Policy, Elsevier, vol. 87(C), pages 465-479.
    10. Shao, Shuai & Huang, Tao & Yang, Lili, 2014. "Using latent variable approach to estimate China׳s economy-wide energy rebound effect over 1954–2010," Energy Policy, Elsevier, vol. 72(C), pages 235-248.
    11. Wang, Yuelin & Xu, Bin, 2025. "Assessing the effective drivers of energy poverty reduction in China: A spatial perspective," Energy, Elsevier, vol. 320(C).
    12. Ballo, Lukas & de Freitas, Lucas Meyer & Meister, Adrian & Axhausen, Kay W., 2023. "The E-Bike City as a radical shift toward zero-emission transport: Sustainable? Equitable? Desirable?," Journal of Transport Geography, Elsevier, vol. 111(C).
    13. Chang, Ming-Chung, 2016. "Applying the energy productivity index that considers maximized energy reduction on SADC (Southern Africa Development Community) members," Energy, Elsevier, vol. 95(C), pages 313-323.
    14. Bernard Arogyaswamy, 2022. "Climate Change Mitigation Technologies: Prospects and Challenges," Modern Applied Science, Canadian Center of Science and Education, vol. 16(4), pages 1-1, November.
    15. Jacqueline Corbett, 2013. "Using information systems to improve energy efficiency: Do smart meters make a difference?," Information Systems Frontiers, Springer, vol. 15(5), pages 747-760, November.
    16. Maowen Sun & Boyi Liang & Xuebin Meng & Yunfei Zhang & Zong Wang & Jia Wang, 2024. "Study on the Evolution of Spatial and Temporal Patterns of Carbon Emissions and Influencing Factors in China," Land, MDPI, vol. 13(6), pages 1-24, June.
    17. Halvorsen, Bente & Larsen, Bodil Merethe, 2021. "Identifying drivers for the direct rebound when energy efficiency is unknown. The importance of substitution and scale effects," Energy, Elsevier, vol. 222(C).
    18. Hardaway, Kendrick & Teran, Oscar & Cai, Hua, 2025. "Silent emissions: The cyber-infrastructure environmental impacts of autonomous vehicles," Applied Energy, Elsevier, vol. 392(C).
    19. Fouquet, Roger, 2014. "Long run demand for energy services: income and price elasticities over two hundred years," LSE Research Online Documents on Economics 59070, London School of Economics and Political Science, LSE Library.
    20. Turner, Karen & Katris, Antonios, 2017. "A ‘Carbon Saving Multiplier’ as an alternative to rebound in considering reduced energy supply chain requirements from energy efficiency?," Energy Policy, Elsevier, vol. 103(C), pages 249-257.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:17:y:2025:i:19:p:8640-:d:1758365. 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.