Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions
This study addresses the research gap in understanding the interplay between outward foreign direct investment (OFDI), environmental policy (ENPO), and research and development (REDE) in driving renewable energy innovation technology (REIT) within the Belt and Road Initiative (BRI) countries. Despit...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-06-01
|
| Series: | Sustainable Futures |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188825001650 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850220568505221120 |
|---|---|
| author | John Wiredu Qian Yang Michael Provide Fumey Evans Yeboah |
| author_facet | John Wiredu Qian Yang Michael Provide Fumey Evans Yeboah |
| author_sort | John Wiredu |
| collection | DOAJ |
| description | This study addresses the research gap in understanding the interplay between outward foreign direct investment (OFDI), environmental policy (ENPO), and research and development (REDE) in driving renewable energy innovation technology (REIT) within the Belt and Road Initiative (BRI) countries. Despite the growing emphasis on sustainable development, limited research has explored how these factors collectively influence REIT across diverse economic and regulatory landscapes. Using data from 2005 to 2022, this study provides empirical insights into their dynamic relationships, offering a comprehensive perspective on the mechanisms shaping renewable energy innovation in BRI nations. Using panel cointegration, the Panel Autoregressive Distributed Lag (ARDL) model and causality analysis on data from 13 BRI economies reveal that OFDI hinders REIT as international investments divert capital from domestic renewable energy. However, stringent ENPO fosters environmentally friendly technology, benefiting long-term development. Knowledge spillovers from OFDI and REDE support REIT in the short term. The study highlights reciprocal links between OFDI and ENPO and how REIT influences investments and environmental regulations, demonstrating complex interactions. Coordinated policies promoting foreign investment, R&D, strict environmental regulations, and regional cooperation are recommended to maximize socioeconomic benefits from REIT. The findings emphasize the BRI's potential to accelerate sustainable development through strategic alignment of financial, technological, and regulatory frameworks. |
| format | Article |
| id | doaj-art-6ee704ac226f4d2eba6e3758431f5642 |
| institution | OA Journals |
| issn | 2666-1888 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj-art-6ee704ac226f4d2eba6e3758431f56422025-08-20T02:07:02ZengElsevierSustainable Futures2666-18882025-06-01910059510.1016/j.sftr.2025.100595Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regionsJohn Wiredu0Qian Yang1Michael Provide Fumey2Evans Yeboah3School of Management, Northwestern Polytechnical University, Xi'an, Shaanxi Province, China; Corresponding authors.School of Management, Northwestern Polytechnical University, Xi'an, Shaanxi Province, China; Corresponding authors.School of Public Policy and Administration, Northwestern Polytechnical University, Xi'an, Shaanxi, ChinaDepartment of Statistics and Operation Analysis, Mendel University in Brno, Czech RepublicThis study addresses the research gap in understanding the interplay between outward foreign direct investment (OFDI), environmental policy (ENPO), and research and development (REDE) in driving renewable energy innovation technology (REIT) within the Belt and Road Initiative (BRI) countries. Despite the growing emphasis on sustainable development, limited research has explored how these factors collectively influence REIT across diverse economic and regulatory landscapes. Using data from 2005 to 2022, this study provides empirical insights into their dynamic relationships, offering a comprehensive perspective on the mechanisms shaping renewable energy innovation in BRI nations. Using panel cointegration, the Panel Autoregressive Distributed Lag (ARDL) model and causality analysis on data from 13 BRI economies reveal that OFDI hinders REIT as international investments divert capital from domestic renewable energy. However, stringent ENPO fosters environmentally friendly technology, benefiting long-term development. Knowledge spillovers from OFDI and REDE support REIT in the short term. The study highlights reciprocal links between OFDI and ENPO and how REIT influences investments and environmental regulations, demonstrating complex interactions. Coordinated policies promoting foreign investment, R&D, strict environmental regulations, and regional cooperation are recommended to maximize socioeconomic benefits from REIT. The findings emphasize the BRI's potential to accelerate sustainable development through strategic alignment of financial, technological, and regulatory frameworks.http://www.sciencedirect.com/science/article/pii/S2666188825001650Renewable energy innovation technologyOutward foreign direct investmentResearch & developmentEnvironmental policyBelt and road initiative regions |
| spellingShingle | John Wiredu Qian Yang Michael Provide Fumey Evans Yeboah Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions Sustainable Futures Renewable energy innovation technology Outward foreign direct investment Research & development Environmental policy Belt and road initiative regions |
| title | Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions |
| title_full | Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions |
| title_fullStr | Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions |
| title_full_unstemmed | Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions |
| title_short | Does outward foreign direct investment influence renewable energy innovation technology? The role of environmental policy and research & development in belt and road initiative regions |
| title_sort | does outward foreign direct investment influence renewable energy innovation technology the role of environmental policy and research amp development in belt and road initiative regions |
| topic | Renewable energy innovation technology Outward foreign direct investment Research & development Environmental policy Belt and road initiative regions |
| url | http://www.sciencedirect.com/science/article/pii/S2666188825001650 |
| work_keys_str_mv | AT johnwiredu doesoutwardforeigndirectinvestmentinfluencerenewableenergyinnovationtechnologytheroleofenvironmentalpolicyandresearchampdevelopmentinbeltandroadinitiativeregions AT qianyang doesoutwardforeigndirectinvestmentinfluencerenewableenergyinnovationtechnologytheroleofenvironmentalpolicyandresearchampdevelopmentinbeltandroadinitiativeregions AT michaelprovidefumey doesoutwardforeigndirectinvestmentinfluencerenewableenergyinnovationtechnologytheroleofenvironmentalpolicyandresearchampdevelopmentinbeltandroadinitiativeregions AT evansyeboah doesoutwardforeigndirectinvestmentinfluencerenewableenergyinnovationtechnologytheroleofenvironmentalpolicyandresearchampdevelopmentinbeltandroadinitiativeregions |