Testing EKC hypothesis with energy and sustainable development challenges: a fresh evidence from belt and road initiative economies

Abstract

Diverse impact of greenhouse gasses (GHGs) over the landscape of environment is generally believed in literature. As CO2 emission acutely leads to GHGs is a major contributor for global warming, it creates a serious pressure on natural resources and ecological settings. Similarly, low-carbon (CO2) economy, plenty of energy resources, and sustainable growth are a big ask for worldwide economies in this era of mechanization. This paper analyzes the Environmental Kuznets Curve (EKC) hypothesis, for Belt and Road Initiative (BRI) economies, to contend the role of mega projects in BRI as an attribute for ecological detriments. The on-hand study engages fresh data information ranging from 1981 to 2016 holding with heterogeneity and cross-sectional dependence as a special deliberation. The calculated outcomes expose that, mean group estimator provides strong evidence and favor the existence of EKC approximately in every region. The long-run influence is measured by pooled mean group estimators, which shows significant outcomes in every region; additionally, the EKC hypothesis affirmed in the long run especially for developed economies. Mega projects, i.e., BRI requisite immense energy sources to accomplishing the enclosed projects efficiently and effectively. The positive association between carbon emission and energy consumption troubled the governments to make policies for restraining the magnitude of carbon emission and controls energy usage for enduring environment to its original position. Next, the valuations depicted the dense recommendations for state administrations in capacity of rigorous level supremacy, trash managing campaigns, renewable energy reliance, and advance for desirable judgments to sterilize the atmosphere.

Evaluating the Energy Consumption Inequalities in the One Belt and One Road Region: Implications for the Environment

“…57 out of 65 of these countries had already signed the articles of agreement of the Asian Infrastructure Investment Bank for official banking service among the BRI region [2]. BRI economies have a 30%, 38.5%, and 62.3% share of global gross domestic product (GDP), land area, and population respectively [1][2][3]. An adequate level of energy is required to achieve the maximum level of output because energy is an essential feature for nurturing all development processes [3,4].…”

“…BRI economies have a 30%, 38.5%, and 62.3% share of global gross domestic product (GDP), land area, and population respectively [1][2][3]. An adequate level of energy is required to achieve the maximum level of output because energy is an essential feature for nurturing all development processes [3,4]. Rapid economic growth leads to an increase in energy use, which has a negative impact on the environment [5].…”

“…Rapid economic growth leads to an increase in energy use, which has a negative impact on the environment [5]. In the modern world, industrial expansion creates additional demand for energy to fulfil capital intensive growth requirements and modern business operations [3]. According to the World Bank, the world energy consumption increased by nearly 1.43% in 2015, while China was consuming energy at an increased rate of 1.04% [6].…”

“…1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Energy consumption per capita share of global gross domestic product (GDP), land area, and population respectively [1][2][3]. An adequate level of energy is required to achieve the maximum level of output because energy is an essential feature for nurturing all development processes [3,4]. Rapid economic growth leads to an increase in energy use, which has a negative impact on the environment [5].…”

“…East Asia depicts a rapidly increasing energy consumption pattern due to the Chinese economy, as China is the second largest global economy. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Energy consumption per capita Regional Energy Consumption Pattern of BRI Europe South Asia MENA Central Asia Southeast Asia East Asia On the other hand, BRI economies require energy to start mega-projects, which increases air pollutants and environmental degradation [3,7]. The average energy consumption is increasing environmental degradation in Europe.…”