Evaluating megaprojects from a sustainability perspective: a case of China-Pakistan economic corridor (CPEC)

Abstract

Purpose This paper aims to examine the impact of various economic, social and environmental issues on the sustainable development of Pakistan, both directly and indirectly through the sustainability dimensions of China–Pakistan Economic Corridor (CPEC), a multi-billion-dollar megaproject. Design/methodology/approach Using a quantitative (deductive) methodological approach, data were collected using a strategy of an online questionnaire survey from diverse stakeholders of CPEC in Pakistan. Partial least squares-based structural equation modeling technique was used to test the relationship between observed and latent variables. Findings The results confirmed the positive impact of various economic, social and environmental issues on the sustainable development of Pakistan directly and indirectly through the partial mediation of sustainability dimensions of CPEC. Practical implications Sustainability perceptions of stakeholders about CPEC and its relationship with sustainable development are critical issues for governments and policymakers. This paper suggest how economic, social and environmental dimensions of CPEC can enhance the positive perception which is necessary for stakeholder involvement and support for megaprojects such as CPEC. Originality/value This study evaluated the megaprojects of CPEC from a sustainability perspective through stakeholders’ perceptions by proposing and testing a parsimonious research model that has never been examined in the existing literature.

Environmental Impact Assessment (EIA) of CPEC road project by following EIA index approach for sustainability

“…After indicating these measures, the review and proper implementation of these actions should be reported to minimize the negative environmental impacts, i.e., CO2 emissions, biodiversity loss, agricultural land loss, and water pollution linked with the development of CPEC road project. The results of this study recommend a proper EIA of CPEC road project to ensure environmental sustainability and long-term benefits (Aslam, 2006;Hassan et al, 2022;Zhang et al, 2013).…”

Prospects of Cpec and Economic and Social Sustainability in Pakistan

“…One of the main benefits of CPEC is the potential to boost Pakistan's economy. The project is expected to generate employment opportunities and increase trade between China and Pakistan (Khan, 2019). According to a report by the International Monetary Fund (IMF), CPEC could increase Pakistan's GDP growth by 1-2 percentage points per year over the medium term (IMF, 2017).…”

“…In addition to economic benefits, CPEC has the potential to bring social benefits to Pakistan. For example, the project includes plans for the construction of hospitals, schools, and vocational training centers (Khan, 2019). These facilities could improve access to healthcare and education for people living in remote areas of Pakistan.…”

“…For example, the construction of roads and railways could have a significant impact on the environment, including deforestation and soil erosion (Ali & Afridi, 2019). Additionally, the project includes plans for the construction of Prospects of CPEC and Economic and Social Sustainability in Pakistan coal-fired power plants, which could have negative impacts on air quality and contribute to climate change (Khan, 2019).…”

“…Another study by Khan and Naeem (2019) examined the impact of CPEC on employment and poverty reduction in Pakistan. The study found that the project had the potential to generate significant employment opportunities, particularly in the construction and transportation sectors.…”