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Low-carbon financial risk factor correlation in the belt and road PPP project

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  • Sun, Yu
  • Chen, Lizhen
  • Sun, Huaping
  • Taghizadeh-Hesary, Farhad

Abstract

A public-private partnership (PPP) project is a complex system with several stakeholders. The Green Belt and Road Initiative PPP project, in particular, entails multinational cooperation; therefore, the risks associated with this project are more complex and varied. Based on the grounded theory, this study identified 10 core low-carbon financial risk factors that could potentially derail the project. The Interpretive Structural Modeling methods were used to establish a hierarchical structure of the risks involved. The results show a strong correlation among the risk factors. The risk databases of the BRI need to be established, in order to ensure efficient green investments.

Suggested Citation

  • Sun, Yu & Chen, Lizhen & Sun, Huaping & Taghizadeh-Hesary, Farhad, 2020. "Low-carbon financial risk factor correlation in the belt and road PPP project," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319314928
    DOI: 10.1016/j.frl.2020.101491
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    References listed on IDEAS

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