Regional integration and renewable energy transition for sustainable development in belt and road initiative countries
Keywords:
Regional integration, Renewable energy transition, Sustainable development, Belt and road initiative, Government size, Current account balanceAbstract
This study examines how renewable energy transition, regional integration, government size, and current account balance affect sustainable development in 52 Belt and Road countries (2006–2021). Using Two-Step System GMM, it finds that renewable energy transition and government size are insignificant, while regional integration positively impacts sustainability when coupled with economic growth, and current account balance also has a positive effect. These results guide policymakers in promoting clean energy, regional cooperation, and effective governance for long-term sustainability.
References
1. IPCC Global Warming of 1.5°C; 2018; ISBN 9781009157940.
2. Luderer, G.; Vrontisi, Z.; Bertram, C.; Edelenbosch, O.Y.; Pietzcker, R.C.; Rogelj, J.; De Boer, H.S.; Drouet, L.; Emmerling, J.; Fricko, O.; et al. Residual Fossil CO2 Emissions in 1.5-2 °c Pathways. Nat. Clim. Chang. 2018, 8, 626–633, doi:10.1038/s41558-018-0198-6.
3. United Nations Transforming Our World: The 2030 Agenda for Sustainable Development.
4. UN Ensuring Access to Affordable, Reliable, Sustainable and Modern Energy. 2019, 22559.
5. IEA World Energy Outlook 2019 ー. World Energy Outlook 2019 2019, 1.
6. Berrill, P.; Arvesen, A.; Scholz, Y.; Gils, H.C.; Hertwich, E.G. Environmental Impacts of High Penetration Renewable Energy Scenarios for Europe. Environ. Res. Lett. 2016, 11, doi:10.1088/1748-9326/11/1/014012.
7. Hansen, K.; Mathiesen, B.V.; Skov, I.R. Full Energy System Transition towards 100% Renewable Energy in Germany in 2050. Renew. Sustain. Energy Rev. 2019, 102, 1–13, doi:10.1016/j.rser.2018.11.038.
8. Ullah, A.; Nobanee, H.; Ullah, S.; Iftikhar, H. Renewable Energy Transition and Regional Integration: Energizing the Pathway to Sustainable Development. Energy Policy 2024, 193, 114270, doi:10.1016/j.enpol.2024.114270.
9. Dradra, Z. Do Energy Transition and Environmental Taxation Contribute to Sustainable Development ? Evidence from OECD Countries. 2025, doi:10.1108/AGJSR-05-2023-0195.
10. Huh, H.S.; Park, C.Y. Asia-Pacific Regional Integration Index: Construction, Interpretation, and Comparison. J. Asian Econ. 2018, 54, 22–38, doi:10.1016/j.asieco.2017.12.001.
11. Goh, H.; Syawal, M.; Mohd, B. The Optimal Government Size and Economic Growth : A Comparative Study between Malaysia and South Korea. Heliyon 2023, 9, e22834, doi:10.1016/j.heliyon.2023.e22834.
12. Abdillah, K. Optimum Government Size and Economic Growth in Indonesia : ARDL Model Approach. 2023, 18, 37–47.
13. Monamodi, N.E. The Impact of Current Account Balance on Economic Growth in South Africa. 2024.
14. Altayligil, Y.B.; Çetrez, M. Macroeconomic , Institutional and Financial Determinants of Current Account Balances : A Panel Data Assessment. J. Econ. Struct. 2020, 1–23, doi:10.1186/s40008-020-00225-1.
15. Hou, X.; Shao, C.; Wang, X.; Zhang, Q. Environmental Effects of the Belt and Road Initiative: Evidence from Countries along the Belt and Road. Transp. Res. Part D Transp. Environ. 2020, 81.
16. Dunford, M.; Liu, W. The Belt and Road Initiative. Int. Encycl. Geogr. 2020, 1–10, doi:10.1002/9781118786352.wbieg2020.
17. Rauf, A.; Liu, X.; Amin, W.; Rehman, O.U.; Li, J.; Ahmad, F.; Victor Bekun, F. Does Sustainable Growth, Energy Consumption and Environment Challenges Matter for Belt and Road Initiative Feat? A Novel Empirical Investigation. J. Clean. Prod. 2020, 262, 121344, doi:10.1016/j.jclepro.2020.121344.
18. Gatto, A.; Drago, C.; Panarello, D.; Aldieri, L. Energy Transition in China: Assessing Progress in Sustainable Development and Resilience Directions. Int. Econ. 2023, 176, 100450, doi:10.1016/j.inteco.2023.08.001.
19. Dirma, V.; Neverauskien, L.O. ¯ut˙e; Tvaronaviˇcien, M.; Danileviˇcien, I.; ¯unien˙e, R.T. The Impact of Renewable Energy Development on Economic Growth. 2024.
20. Feng, Y.; Zhao, T. Exploring the Nonlinear Relationship between Renewable Energy Consumption and Economic Growth in the Context of Global Climate Change. 2022.
21. Asmawati, T.; Hidayat, M.; Murialti, N. Analysis of Government Expenditure and Investment in Reducing Unemployment Between Regions of The Island Of Sumatra with Fd-Gmm And Sys-Gmm Methods. 2025, 8, 756–768.
22. Pomerlyan, E.; Belitski, M. Integration - Growth Relationship: A Literature Review and Future Research Agenda Using a TCCM Approach. Eur. Manag. J. 2023, 41, 1106–1118, doi:10.1016/j.emj.2023.10.003.
23. Börzel, T.A.; Risse, T. Grand Theories of Integration and the Challenges of Comparative Regionalism. J. Eur. Public Policy 2019, 26, 1231–1252, doi:10.1080/13501763.2019.1622589.
24. Wu, J.; Sun, W. Regional Integration and Sustainable Development in the Yangtze River Delta , China : Towards a Conceptual Framework. 2023.
25. Syawal, M.; Mohd, B.; Goh, H.; Koong, S.; Tan, S. Heliyon Nonlinear Threshold Approach for Asymmetric Effects of Government Size on Economic Growth in an Emerging Asian Economy : The Malaysian Experience. Heliyon 2022, 8, e10524, doi:10.1016/j.heliyon.2022.e10524.
26. Edwards, S. Thirty Years of Current Account Imbalances, Current Account Reversals, and Sudden Stops. 2004, 51, 1–49.
27. Sachs, J.D. The Age of Sustainable Development; 2015;
28. Grossman, G. M., & Krueger, A.B. Economic Growth and the Environment. Q. J. Econ. 1995, 353–377.
Downloads
Published
Conference Proceedings Volume
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.