IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v27y2025i2d10.1007_s10668-023-04093-0.html
   My bibliography  Save this article

Boosting green energy: impact of financial development, foreign direct investment, and inflation on sustainable energy productivity in China–Pakistan economic corridor (CPEC) countries

Author

Listed:
  • Muhammad Suhrab

    (Huazhong University of Science and Technology (HUST))

  • Atta Ullah

    (Huazhong University of Science and Technology (HUST))

  • Chen Pinglu

    (Huazhong University of Science and Technology (HUST))

  • Magdalena Radulescu

    (University of Pitesti
    University Lucian Blaga of Sibiu)

Abstract

This study examined the effects of financial development (FD), foreign direct investment (FDI), and inflation (INF) on sustainable energy productivity (SEP) in the CPEC economies, based on panel data per month from January 2004 to December 2020. The autoregressive distributed lag model, correlation analysis, and dynamic ordinary least squares models were used to examine the effects of the variables. The findings proved that each factor exerts a significant impact on sustainable energy productivity. The results revealed that FDI and FD positively and significantly affected SEP, while INF had negative and critical consequences. The study also discovered that these variables have short-term and long-term impacts on SEP. The outcomes showed that financial growth in CPEC countries is vital for minimizing financial risks that could negatively impact financial market stability and SEP. Long-term financing at low rates of return, investment risks, and a lack of market players were also identified as significant obstacles to green energy projects. As a result, policymakers should consider these factors for developing more effective strategies to encourage renewable energy. Graphical abstract

Suggested Citation

  • Muhammad Suhrab & Atta Ullah & Chen Pinglu & Magdalena Radulescu, 2025. "Boosting green energy: impact of financial development, foreign direct investment, and inflation on sustainable energy productivity in China–Pakistan economic corridor (CPEC) countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 4659-4682, February.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:2:d:10.1007_s10668-023-04093-0
    DOI: 10.1007/s10668-023-04093-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-04093-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-04093-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:27:y:2025:i:2:d:10.1007_s10668-023-04093-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.