Cooperative Innovation Under the “Belt and Road Initiative” for Reducing Carbon Emissions: An Estimation Based on the Spatial Difference-in-Differences Model

Abstract

The Belt and Road Initiative holds significant importance for achieving the United Nations’ Sustainable Development Goals, particularly Goals 9 and 17. Drawing on data from the Web of Science database, the BRI database, and the World Bank database, this study explores the potential carbon emission reduction effects that cooperative innovations may bring to participating countries under the Belt and Road Initiative. The study constructs variable endogenous spatio-temporal weight matrices based on initial spatial weight matrices and, drawing on trends in co-authored publications, innovatively establishes time dummy variables and event dummy variables in a difference-in-differences (DID) model. This approach fully considers the interconnected, shared model of the Belt and Road Initiative and the spatial effects of policy implementation. A spatial DID model was established for 106 BRI participating countries and regions from 2005 to 2021. The results reveal the following: first, cooperative innovation under the BRI significantly reduces carbon emission intensity in participating countries. Second, the BRI primarily achieves carbon reduction through investment, innovation, and trade mechanisms. Third, the results of the global SDID model indicate that cooperative innovation with China negatively impacts carbon emission intensity. Also, this effect exhibits spatial spillover, suggesting that there is a policy spillover effect. Fourth, the decomposition of local policy shock effects indicates that the influences of cooperative innovation exhibit spatial heterogeneity, with varying degrees of direct and indirect effects on carbon emission intensity across different countries.