Toward sustainable development: Revealing the dynamic impacts of the belt and road initiative on energy transition

Abstract

AbstractThis article investigates the influence of the belt and road initiative (BRI) on energy transition within the context of sustainable development goal (SDG) 7. The study utilizes daily data from May 3, 2017, to June 30, 2023, and deploys advanced econometric methods like heatmap‐based QVAR, cross‐quantilogram, and recursive time‐varying methods. The findings determine that BRI can significantly foster the global energy transition process. Further, the Paris Agreement (PA) and green finance (GF) support the energy transition system by showing positive effects. In contrast, geopolitical risk (GPR) introduces disruptive elements that impede green energy production. Notably, the amalgamation of GF, PA, and BRI showcases the potential to not only facilitate SDG 7 but also contribute substantially to SDGs 8 and 13. Based on the above findings, the study suggests fostering synergies and collaboration between GF, PA, and BRI to maximize their combined impact on the energy transition, which may decrease the influence of GPR.