Club convergence in energy efficiency of Belt and Road Initiative countries: The role of China’s outward foreign direct investment

B-Tier
Journal: Energy Policy
Year: 2022
Volume: 168
Issue: C

Authors (4)

Peng, Hua-Rong (not in RePEc) Tan, Xiujie (not in RePEc) Managi, Shunsuke (Kyushu University) Taghizadeh-Hesary, Farhad (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Countries along with the Belt and Road Initiative (BRI) differ in geographical location, technological levels, and resource endowment. It is worth paying attention to the evolution of the gap in energy efficiency of BRI countries. Therefore, this study investigated club convergence in total-factor energy efficiency (TFEE) of BRI countries, and the role of China's outward foreign direct investment (OFDI) in TFEE convergence, by adopting panel data over 1996–2019. Results indicate that the TFEE of the BRI countries showed a trend of divergence as a whole, but converged to three convergence clubs with different characteristics of 1) high TFEE and convergence rates (20 countries); 2) middle TFEE and convergence rates (13 countries), 3) low TFEE and convergence rates (27 countries). We also found that China's OFDI in low-carbon industries in BRI countries contributed to the convergence of clubs with high energy efficiency and convergence rates. Moreover, China's OFDI in high-carbon industries showed a pollution halo effect, causing lower energy efficiency countries to converge to the high energy efficiency and convergence rate club.

Technical Details

RePEc Handle
repec:eee:enepol:v:168:y:2022:i:c:s0301421522003640
Journal Field
Energy
Author Count
4
Added to Database
2026-01-25