Can Chinese outward foreign direct investment help the belt and road low-carbon development? Evolutionary game in China’s environmental responsibility

• Published in: Environment, development and sustainability development and sustainability, 2024-05, Vol.26 (5), p.11049-11088
• Main Authors: Mao, Xiangyu, Wang, Ying, Zameer, Hashim, Song, Haohao
• Format: Article
• Language: English
• Subjects: Carbon; Carbon content; Climate change; Cooperation; Earth and Environmental Science; Ecology; Economic development; Economic Geology; Economic Growth; Economics; Environment; Environmental Economics; Environmental Management; Environmental security; Foreign investment; Governance; Government; Roads; Simulation; Subsidies; Sustainable Development
• ISSN: 1573-2975; 1387-585X; 1573-2975
• DOI: 10.1007/s10668-023-03207-y

Carrying out low-carbon economic cooperation under the belt and road initiative (BRI) is an important measure to actively respond to climate change and maintain global ecological security. With the continuous development of national strength, the Chinese government should actively fulfill environmental responsibility in the BRI economic cooperation. Existing studies have pointed out that the Chinese government can promote low-carbon economic cooperation in BRI through outward foreign direct investment (OFDI), and emphasized the significance of the Chinese government's participation. However, they have not revealed the relationship between China's environmental responsibility and the construction of a green BRI. To fill this gap, this paper analyzes the strategic choices and relevant influencing factors of the Chinese government, governments of countries along the BRI, and Chinese OFDI enterprises in the BRI low-carbon economic cooperation. Through parameter assignment and simulation, this paper draws the following conclusions: (1) The Chinese government should decide whether to take the initiative to fulfill environmental responsibility according to the economic development level of countries along the BRI; (2) The Chinese government fulfilling environmental responsibility is positive and effective for the responsible investment of Chinese OFDI enterprises; (3) The Chinese government fulfilling environmental responsibility can enhance the initiative of countries along the BRI to positive governance, but this enhancement is not last. More importantly, the environmental responsibility of the Chinese government is not simply to provide subsidies to countries along the BRI. Various measures must be taken by the Chinese government to fulfill its environmental responsibility in the BRI economic cooperation.