Does energy consumption, financial development, and investment contribute to ecological footprints in BRI regions?

This study applies augmented mean group (AMG) along with common correlated effect mean group (CCEMG) estimator and panel heterogeneous causality to examine the interrelationship between GDP, energy consumption, financial development, foreign investment, and ecological footprints for five Belt and Road initiative (BRI) regions and in aggregated panel of BRI over the time 1990-2016. Using a multivariate framework, this study examines four alternative and conceivable hypotheses, including Pollution haven hypothesis, environmental Kuznets curve hypothesis, energy push emission hypothesis, and finance push emission hypothesis. The empirical results supported all four hypotheses for the panel of BRI and partially supported the existence of these hypotheses across the regions. Moreover, a variety of causal nexuses has been discussed in the study. Based on these results, the current research has proposed policy implications to combat the ecological footprints of BRI countries and across the regions.