The impact of green fnance on environmental degradation in BRI region

Chin, Mui Yin and Ong, Sheue Li and Daniel Boon Yann, Ooi and Puah, Chin Hong (2022) The impact of green fnance on environmental degradation in BRI region. Environment, Development and Sustainability. ISSN 1573-2975

[img] PDF
The impact.pdf

Download (332kB)
Official URL:


The Belt and Road Initiative (BRI) is one of the largest infrastructure projects in the world, accounting for more than 30% of global GDP and 60% of world population. The economic growth of BRI member countries can be improved signifcantly, attributable to the success‑fulness of the infrastructure projects. The increased economic growth indirectly leads to higher energy consumption and environmental damage. In response to this, the BRI estab‑ lished a new concept and version of the project, namely green BRI. Thus, this study aims to examine if green fnance plays a signifcant role in mitigating environmental degradation in the BRI region. Utilising a Generalised Method of Moments approach, we fnd green fnance is negatively and signifcantly correlated with environmental degradation, suggest‑ing green fnance play an essential role to reduce the deterioration of environmental qual‑ ity, while enhancing economic growth at the same time. In conclusion, BRI member states should continue promoting green fnance by implementing incentive schemes, such as subsidising interest rates for the green loan, reducing corporate tax and establishing green credit guarantee scheme. Besides, in order simultaneously enhance economic growth, pro‑mote sustainability and achieve the 2030 Sustainable Development Goals, both governments and private sector should work hand in hand to promote green transformation of BRI.

Item Type: Article
Uncontrolled Keywords: Green fnance · Environmental degradation · SDG · BRI region.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Gani
Date Deposited: 27 Dec 2022 01:39
Last Modified: 27 Dec 2022 01:39

Actions (For repository members only: login required)

View Item View Item