Analyzing belt & road's impact on sustainable development via green economy, public investment, and renewable energy

Abstract

As a possible solution to climate change and economic stagnation, the term "green economy" has entered the lexicon of mainstream politics and business. Without the green Belt and Road Initiative (BRI), the 2030 Agenda for Sustainable Development's goal of a green transformation in the local cheap would not be met. The goal of this study was to put a numerical value on the correlation between green economic performance and public investment, and to do so we employed a system generalized method of moments (GMM) estimation and data envelopment analysis. This technique makes use of panel data from a subset of BRI nations obtained between 2008 and 2018. The results show that inconsistent green economic performance index scores can be attributed to a lack of effective government programs in BRI countries. The econometric analysis also suggests that public investment in green economic growth is positively correlated with that growth's environmental friendliness. The results also show that developing countries might reap financial benefits from investing in human capital and renewable energy by employing skilled labor and cutting-edge methods of economic growth, but the specifics of this relationship will vary greatly from one nation to the next. The paper concludes with suggestions for alterations to public policy that could be adopted by BRI states.