The role of financial inclusion, urbanization, and energy efficiency on environmental performance in belt and roads initiative (BRI) economies

Abstract

The primary objective of the study is to determine how environmental performance is affected by several factors, including trade freedom, industrial production, urbanization, financial inclusion, and energy efficiency. This research provides a novel perspective on the environmental performance of Belt and Roads Initiatives (BRI) member states by employing panel data from 1991 to 2021. It contributes to our understanding of the role of several factors in improving environmental performance. Panel data analysis also incorporates the CD, CIPS, FMOLS, DOLS, and PMG-ARDL tests. This research possesses substantial theoretical ramifications, as it might enable the expansion and refinement of current economic and environmental theories. As per the findings of this research, each factor significantly affects environmental performance (ecological foot-point). This contributes to short-term environmental issues by conserving resources and lowering emissions, creating the framework for long-term environmentally friendly procedures and innovation. Strong environmental policies that may cause effective environmental performance in Belt and Roads Initiatives (BRI) countries.