Unleashing the Dynamics Among Energy Consumption, Gross Domestic Product, Environmental Degradation and Urbanization: An Evidence from Belt and Road Initiative Countries

Abstract

Metropolitan regions rise as polluting industries like transportation and industry consume fossil fuels. Globalization may accelerate urbanization and city density. Increased wages in many emerging economies are driving more people to cities. This research analyses the impact of gross domestic product, energy, and urbanization on CO2 emissions in Belt and Road Initiative countries with the moderating effect of foreign direct investment. We selected 104 Belt and Road Initiative countries for analysis according to their income level. Data was collected from world development indicators spanning from 1990 to 2021. After utilizing the Panel Least Square Model (Regression) to examine the impact of urbanization, foreign direct investment, energy, and gross domestic product on CO2 emissions, significant findings were found. According to the findings of the study, BRICS authorities should adopt an environmental plan that minimizes CO2 emissions without limiting economic growth. According to the current study, the government should help marketplaces by creating a robust legislative context that produces long lasting value for decreasing emissions and by consistently approving new technologies that contribute to a less carbon-intensive economy.