Boosting green energy: impact of financial development, foreign direct investment, and inflation on sustainable energy productivity in China–Pakistan economic corridor (CPEC) countries

Suhrab M., Ullah A., Pinglu C., Radulesku M.

Environment, Development and Sustainability, vol.27, no.2, pp.4659-4682, 2025 (SCI-Expanded, Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 27 Say: 2
  • Nəşr tarixi: 2025
  • Doi nömrəsi: 10.1007/s10668-023-04093-0
  • jurnalın adı: Environment, Development and Sustainability
  • Jurnalın baxıldığı indekslər: Science Citation Index Expanded (SCI-EXPANDED), Scopus, ABI/INFORM, BIOSIS, Geobase, Greenfile, Index Islamicus
  • Səhifə sayı: pp.4659-4682
  • Açar sözlər: CPEC economies, Financial development, Foreign direct investment, Inflation, Sustainable energy productivity
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

This study examined the effects of financial development (FD), foreign direct investment (FDI), and inflation (INF) on sustainable energy productivity (SEP) in the CPEC economies, based on panel data per month from January 2004 to December 2020. The autoregressive distributed lag model, correlation analysis, and dynamic ordinary least squares models were used to examine the effects of the variables. The findings proved that each factor exerts a significant impact on sustainable energy productivity. The results revealed that FDI and FD positively and significantly affected SEP, while INF had negative and critical consequences. The study also discovered that these variables have short-term and long-term impacts on SEP. The outcomes showed that financial growth in CPEC countries is vital for minimizing financial risks that could negatively impact financial market stability and SEP. Long-term financing at low rates of return, investment risks, and a lack of market players were also identified as significant obstacles to green energy projects. As a result, policymakers should consider these factors for developing more effective strategies to encourage renewable energy.