Regenerating Sustainable energy and environmental solutions: Challenges and Opportunity in Belt and Road Initiative Countries

Abstract

This study examines financial development, economic growth, energy consumption, trade openness, urbanization, and environmental degradation in 47 Belt and Road Initiative (BRI) countries from 1980 to 2022. Panel unit root tests (IPS, LLC, PP, and ADF) ensured data correctness and stationarity. Three co-integration tests examined the variables' connections. Difference of means (DOLS) and functional moment (FMOLS) tests examined  BRI  economies'  co-integration.  A  paired  Granger  causality  test  found  bidirectional  correlations between  CO2  emissions,  urbanization,  financial  development,  economic  growth, and  the  creation  of  gross fixed capital. Trade openness only correlated with ecological well-being. International study suggests regional, state,  and  federal  policy  implications.  The  empirical  investigation  used  a  panel  causal  heterogeneous  test, dynamic ordinary  least squares(DOLS),  and  fully  modified  ordinary  least squares (MOLS)  with  fixed  and random effects. Trade openness negatively affected CO2 emissions, but all other regressors positively affected environmental   quality.   Good   governance   and   country-specific   policies   are   needed   to   maximize   BRI advantages.  Despite  conflicting  energy  statistics,  the  study  found  that  economic  development  hurt  the environment  in  all  47  countries.  Industrialized  nations  generally  use  renewable  energy,  which  minimizes ecological issues, hence their omission from the BRI full panel may explain the negative coefficient. Since most BRI  economies  are  in  emergent  and  growing  countries,  environmental  preservation  and  renewable  energy technologies need more time and money. Instead of coal, the Chinese government and other BRI nations are urged  to  invest  in  wind,  hydro,  solar,  and  biomass.  Sharing  green  energy  technology  might  help  BRI economies.  Cross-national urbanization  strategy  should  incorporate  eco-friendly  solutions.  The  panel  and governments may utilize the paper's substantial policy recommendations.