Manuscript Title:

INVESTIGATING THE CAUSALITY LINKAGES BETWEEN CHINESE ENERGY INVESTMENT IN BELT & ROAD INITIATIVE PROJECTS AND CO2 EMISSIONS: EVIDENCE OF TARGETING THE SUSTAINABLE DEVELOPMENT GOALS IN PAKISTAN

Author:

MUHAMMAD IMRAN, MUHAMMAD HANIF AKHTAR, MUHAMMAD UMER QUDDOOS, MUHAMMAD AKBAR, ARSLAN AHMAD SIDDIQI, MUHAMMAD ADEEL

DOI Number:

DOI:10.5281/zenodo.10453834

Published : 2023-12-23

About the author(s)

1. MUHAMMAD IMRAN - Department of Economics, The Islamia University of Bahawalpur, Pakistan.
2. MUHAMMAD HANIF AKHTAR - Professor of Finance, Head of Department, Department of Commerce, Bahauddin Zakariya University Multan, Pakistan.
3. MUHAMMAD UMER QUDDOOS - Assistant Professor, Department of Commerce, Bahauddin Zakariya University Multan, Pakistan.
4. MUHAMMAD AKBAR - Deputy Secretary, Higher Education Department, Govt. of Punjab, Pakistan.
5. ARSLAN AHMAD SIDDIQI - General Manager, Institute of Industrial and Control System, Karachi, Pakistan.
6. MUHAMMAD ADEEL - MS Scholar, Department of Commerce and Finance, Government College University, Lahore, Punjab, Pakistan.

Full Text : PDF

Abstract

The One Belt One Road, also known as the Belt and Road Initiative (BRI), is a massive regional project that carries significant socioeconomic and geopolitical implications. China spearheads this multi-billiondollar project aimed at enhancing trade, investment, and economic links with 70 countries in Asia, Africa, and Europe by constructing infrastructure such as highways, railways, ports, and power plants. This initiative is anticipated to boost China's regional influence and presence, but it has raised concerns among researchers regarding its environmental effects, especially regarding carbon-based emissions. Investments in fossil fuels are increasingly at the risk of becoming "stranded assets," as these are both environmentally damaging to local populations and financially ruinous for investors. This research study investigates the potential impact of Chinese energy investment via the Belt & Road Initiative (BRI) on the level of CO2-based emissions in Pakistan by using the data from 1990 to 2021 and employing there upon FMOLS econometric methodology to find the coefficient elasticities for Chinese energy investment, GDP per capita, and Population. This study finds that GDP per capita and population have significant positive impacts on Carbon-based emissions while Chinese energy investment reduces the CO2-based emissions in Pakistan, and, by virtue of a significant coefficient value, could go a long way in mitigating Carbon-based emissions in Pakistan. It is strongly recommended that the Pakistani government should ensure socio-economic justice for all regions in the BRI investment initiatives, and local masses should be given employment opportunities in management, engineering, vehicle driving, etc. in these megaprojects of BRI.


Keywords

BRI, CPEC, Energy Investment, Socio-economic Initiative, Carbon-based emissions. SDGs.