Energy Strategy Reviews: Rizwana Yasmeen, Gang Hao, Yusen Ye, Wasi Ul Hassan Shah, Muhammad Abdul Kamal

Energy Strategy Reviews 50 (2023) 101258
Contents lists available at ScienceDirect
Energy Strategy Reviews

journal homepage: www.elsevier.com/locate/esr
The role of governance quality on mobilizing environmental technology

and environmental taxations for renewable energy and ecological
sustainability in belt and road economies: A methods of Moment’s
quantile regression
Rizwana Yasmeen a, f, Gang Hao b, Yusen Ye c, Wasi Ul Hassan Shah d, *,
Muhammad Abdul Kamal e
a
School of Economics and Management, Panzhihua University, Panzhihua, 617000, Sichuan, China
b
Department of Management Science, City University of Hong Kong, Hong Kong, 999077, China
c
Institute for Disaster Management and Reconstruction, Sichuan University, Chengdu, 610017, China
d
School of Management, Zhejiang Shuren University, Hangzhou, China
e
Department of Economics, Abdul Wali Khan University, Mardan, 23200, Pakistan
f
Department of Economics, University of Religions and Denominations, Qom, 37491-13357 Iran
A R T I C L E I N F O A B S T R A C T
Handling editor: Mark Howells Climate change poses a pressing and urgent peril to the overall welfare of the planet, with far-reaching impli
cations for human livelihoods. The aim of this research is to explore the influence of environmental technologies,
Keywords: environmental taxes, and FDI in B&R economies on increasing renewable energy use and lowering ecological
Renewable energy footprints. It also strives to examine how the quality of governance in B&R nations affects the promotion of these
Ecological footprint
environmental initiatives. This study presents interesting results by employing a unique Method of Moments
Environmental technologies
Quantile Regression approach for the period from 1996 to 2018. This highlights the government’s ability to
Environmental tax
Government quality effectively utilize environmental technologies and implement a streamlined taxation system, bolstering the
renewable energy industry and addressing environmental concerns. Moreover, the study highlights the beneficial
impact of governmental initiatives in attracting environmentally friendly investments in the renewable energy
sector. However, significant reforms are necessary to execute taxation policies efficiently and offer strong
backing for technological progress in the renewable energy industry, aiming to decrease carbon emissions
substantially. The findings suggest a need for policy recommendations to increase renewable energy consump
tion and rectify ecological imbalances, with a focus on matching government goals and reforms associated with
environmental taxation and technology.
economies worldwide, which, unfortunately, has led to a simultaneous

escalation in carbon emissions [6]. In 2018, there was a noticeable 2.3 %
1. Introduction
upswing in worldwide energy consumption, leading to a corresponding
1.7 % rise in emissions. Specifically, carbon emissions soared to 33.1
Environmental variations, global warming, and rising sea levels
gigatons, surpassing the previous amount of 32.5 gigatons [7]. The
threaten the planet’s well-being. The primary reason for climate change
massive use of fossil fuels has driven up the air temperature since the
is the enormous rise in greenhouse gas emissions (GHG) and carbon
previous century [8,9]; Zhaohui et al., 2022). According to the 2015
dioxide (CO2), which are presently at historic highs [1–4]. The escalated
Paris Climate Agreement, 175 member states of the United Nations have
GHG emissions are predominately attributed to rapid economic and
agreed to maintain global temperatures below 2◦ Celsius by the year
industrial growth [5]. Between 1971 and 2014, it witnessed a significant
2100 (Allen et al., 2018). The average atmospheric temperature
surge in global energy demand, reflecting a remarkable 44 % surge. This
worldwide is projected to rise within 2.5–7.8 ◦ C degrees [10]. The
expansion stems from the rapid advancement of industries and
* Corresponding author.
E-mail addresses: rizwana_239@yahoo.com (R. Yasmeen), msghao@cityu.edu.hk (G. Hao), moriye@scu.edu.cn (Y. Ye), wasi450@yahoo.com (W.U. Hassan Shah),
kamal@awkum.edu.pk (M.A. Kamal).
https://doi.org/10.1016/j.esr.2023.101258
Received 19 August 2023; Received in revised form 15 October 2023; Accepted 5 November 2023
Available online 16 November 2023
2211-467X/© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-
nc-nd/4.0/).
R. Yasmeen et al. Energy Strategy Reviews 50 (2023) 101258
potential consequences of surpassing this temperature threshold are

List of abbreviations expected to profoundly impact all aspects of human life [8,11]. As a
result, this will impair food and air quality and cause health issues
B&R Belt and Road [12–14]. Therefore, adopting Renewable Energy (RNE) is recommended
FDI Foreign direct investment to contain global warming below 2◦ Celsius [15–17]. Renewable energy
GHG Greenhouse gas sources and smart grid technology are widely accepted as viable and
GDP Gross Domestic production recommended solutions for environmental protection and sustainable
PMMQR Panel Methods of Moment’s Quantile Regression development [18].
CD Cross-section Dependence RNE is the greenest and most promising energy source [19].
DH Dumitrescu and Hurlin Renewable energy sources are broadly recognized as much more envi
ECF Ecological footprint ronmentally benign than fossil fuels due to their reduced carbon emis
CO2 Carbon dioxide sions. Solar power emits approximately 95 % less carbon than coal,
MW Megawatt making it a cleaner and more sustainable energy option [20]. Wind,
OECD Organization for Economic Cooperation and solar, and other RNE sources provide reliable power, thereby bolstering
Development energy security and reducing reliance on imported fuels. Additionally,
RNE Renewable energy RNE sources ensure price stability since they eliminate the need for
NRNE Non-renewable energy transportation or fuel costs. In comparison, the RNE industry is more
labor-intensive and typically generates more job opportunities [21,22].
Non-renewable NRNE sources such as (coal, oil, and gas) are probably to
be depleted within the next 40–60 years.
Indeed, RNE sources are inherently more environmentally compat
ible. However, the issue remains as to who and how should strengthen
and support the RNE industry to ensure a safe and stable environmental
future. In this setting, it is imperative to devise proper strategies and
procedures for execution. Governments can develop environmental
policies and effectively implement them. An obvious example is a
country with strong regulatory standards that can establish and imple
ment well-crafted regulations that uniformly permit and nurture diverse
industries within the country. Inadequate governmental systems can
pose a significant obstacle for financiers seeking to improve efficiency
and maintain ecological standards [23]. A strong judiciary can play a
pivotal role in gathering information, allocating resources, attracting
foreign investment, and promoting growth, all while enhancing a sus
tainable environment [24,25]. Investors distrust corrupt governments,
distorting the green energy investment market [26]. The government
can regulate the renewable energy sector and actively attract foreign
investment to support its growth and development. In this perspective,
the government can perform its role in a two-stream, i.e., environmental
tax and technological innovations.
Carbon pricing and environmental technology are vital to promoting
RNE and curbing global warming. Advanced environmental technology
Fig. 1. Renewable energy consumption of B&R. is important to evolving RNE on a large scale [27]. highlighted that solar
technology has the capability to capture the sun’s energy and deliver
abundant, dependable, and environmentally friendly electricity on a
large scale. Technological advancements are the most powerful ways of
curtailing GHG emissions, securing energy sources, and increasing
economic growth(Shah et al., 2021). Wind and solar energy sources are
becoming economically competitive due to technological improve
ments. Global Data Thematic Research states that modern turbines
exhibit significantly improved efficiency, utilizing wind resources more
effectively and generating higher yields with greater capacity factors.
With increasing technological competence, costs decrease per megawatt
(MW) basis. While the lack of new environmental technologies severely
limits the ability to respond more effectively to changing market de
mands [28,29]. At the same time, advanced technologies can improve
decision-making processes and effective real-time energy management,
thus increasing performance measures [30]. Only environmental in
novations do not always reduce ecological degradation. Governments
should implement impactful environmental policies such as environ
mental taxes to mitigate emissions.
Environmental taxation is the most effective policy for lowering GHG
emissions [31]. Taxing carbon emissions aims to address environmental
challenges and support environmental preservation by internalizing the
negative externalities associated with environmental contamination
[32]. OECD (2011), in a report, highlights that a well-designed envi
Fig. 2. Ecological footprint of B&R countries B&R countries by years. by years. ronmental tax system raises the price of goods or services to account for
2
Fig. 3. Summary of hypothesis.
the societal costs associated with environmental damage. Environ trade, and skills diversification [36].
mental taxes are levied to absorb environmental externalities. Firms Therefore, the selection of B&R as a study area is remarkable and
often fail to account for the long-term impacts their emissions impose on attractive. Fig. 1 shows the renewable energy consumption trend of B&R
the well-being of others. Implementing a tax will compel organizations economies. A linear upward trend is noticed in renewable energy con
to assess this external impact’s consequences carefully (Shogren, J., sumption. However, a sharp drop is also noticed in RNE consumption.
2013). The principle of "polluter-pays" incentivizes economic actors to There might be two possible reasons. According to IEA (2009),2 the
strengthen pollution regulations to minimize pollution levels. Further financial crisis triggered the global economic crisis, which began in mid-
more, this pricing can help to enhance environmental quality by 2007. Second, possibly, the countries are less focused on RNE con
encouraging manufacturers to adopt efficient energy technology [33]. sumption due to their economic priorities. However, it is revealed that
This research explores how government quality influences environ RNE consumption increased affectedly after applying B&R projects. It
mental technology adoption, environmental taxation policies for RNE, can be possible for two reasons: the world realizes the need for RNE
and their impact on the ecological footprint (ECF) in economies along sources. Secondly, Mutual Corporation between countries (B&R energy
the B&R initiative. B&R economies deserve special attention globally for projects) affects positively.
many reasons. The B&R Initiative represents one of the most ambitious Furthermore, numerous studies have relied on CO2 emissions as a
initiatives aimed at expanding infrastructure and promoting trade on a proxy for assessing ecological quality, potentially capturing only a
global scale. This initiative encompasses a vast network of 1800 projects fraction of the total environmental harm. Compared to carbon emission,
across 138 partner countries. These countries account for approximately the ECF is a broader term that includes carbon emissions and other
40 % of the world’s population and contribute around 15 % of the global ecological impacts such as deforestation, soil erosion, water use, and
GDP.1 According to the World Bank, B&R projects could increase global biodiversity loss [37]. it offers a more precise depiction of human ac
trade by up to 1.7 % by 2030 and strengthen governance and environ tivities and aids in identifying areas that require improvement to mini
mental standards. China has attracted foreign investors, accounting for mize the overall environmental impact [38]. This assists us to
20 % of the total foreign direct investment inflows [34]. Investment, comprehend how our actions deplete natural resources, degrade eco
technology sharing, resource mobilization, and the advancement of systems, and contribute to climate change [39]. Thus, this study em
transportation networks significantly boost the development of ploys the Ecological Footprint (ECF) as a comprehensive measure
low-income countries [35]. B&R is a win-win strategy to complete encompassing six dimensions, representing the emissions of greenhouse
various projects involving energy, foreign investment, infrastructure, gases, primarily CO2, resulting from human activities.
1 2
https://www.gbm.hsbc.com/insights/global-research/belt https://iea.blob.core.windows.net/assets/461ac14d-f098-48ce-9ea6 6d1d
-and-road-global-impact#:~:text=China’s%20Belt%20and%20Road,likely% 83160b97/TheImpactoftheFinancialandEconomicCrisisonGlobalEnergyInvest
20to%20grow%20even%20larger. ment.pdf.
3
Fig. 4. Government quality trends of each country. Government effectiveness is used to measure government quality. At Y-axis measurement unit is (Government
Effectiveness Index: Estimate). X-axis is Years. Data source: World Bank governance.
Fig. 5. Environmental technology and government.

Fig. 6. Environmental tax and government quality. At Y- Quality. At Y-axis
measurement unit is (patents on axis measurement (Environmental tax Total, %
of GDP), at Environment technologies Total, Percentage). X-axis is X-axis
(Government Effectiveness: Estimate). (Government Effectiveness: Estimate).
4
Table 1
Descriptive statistics.
envtx entech fdi GDP Rne Ecf GQ
Mean 1.817520 11.99748 7.908211 14508.71 19.03399 3.837207 0.492850

Maximum 5.297000 63.86000 449.0828 112417.9 83.24860 17.72611 2.436975
Minimum 0.000000 0.000000 − 57.53231 785.5334 0.000000 0.060811 − 0.996869
Std. Dev. 1.147386 7.553333 29.36849 17549.39 16.51892 2.466005 0.721360
Coefficient of Variation (%) 63.129 62.957 371.36 120.95 86.786 64.265 146.365
Observations 920 920 920 920 920 920 920
Countries 40 40 40 40 40 40 40
Fig. 7. Box plots and descipritive distribution overlays of the variables.
Fig. 2 shows the ecological footprint, measured in gha per person, economies. Within a strong econometric framework, the present study
and the situation of B&R3 countries. The footprint was not high in earlier introduces novelty to literature in some ways. First, the study uses RNE
periods (1996–2000). A sharp drop-down can be noticed in the and ecological footprints simultaneously as major dependent variables.
ecological footprint in 2009. It might result from the financial crisis, Secondly, this research evaluates environmental technology’s impact on
which reduced energy consumption (Fritz-Morgenthal et al., 2009), RNE promotion. Moreover, this study considers the influence of envi
thus, less pollution. After that, it again started to increase but at a lesser ronmental taxes on the consumption of RNE. Third, the study identifies
rate. The study did not show a high wave of an ecological footprint after the spillover effect of FDI on RNE and ecological footprint. An important
applying the B&R project. Yet, overall, there is a linear upward trend in contribution of the present study is the government’s role in promoting
the ECF of B&R economies. RNE consumption in the B&R economies. This advocates a significant
Based upon the prior discussions, this study’s objectives are to bring contribution as governments in the sampled countries can devise stra
the debate about the influence of the environmental tax and environ tegies to mobilize environmental technology, taxation, and FDI to pro
mental technology on RNE and the ecological footprint for the B&R mote RNE. From this vantage point, the study contributes significantly
to three key areas: (i) the study evaluates the mediation effect of gov
ernment quality with environmental technology to increase RNE and
3
In March 2022, the number of countries that have joined the Belt and Road reduce ECF, (ii) evaluates whether government quality matters to
by signing a Memorandum of Understanding (MoU) with China is 147. The mobilize environmental tax to increase the RNE and lower ECF, (iii)
detail of the countries involved in belt and road available at: https://greenfdc. Also, the study evaluates the mediation impact of government quality
org/countries-of-the-belt-and-road-initiative-bri/.
5
Fig. 7. (continued).
Table 2 Table 3
Cross-dependence and unit root determination. [106].
Variable(s) CD- The average absolute CIPS- First- Variable(s) Min Z-stats P- Min Z-stats P- Order
statistics value of the off- Level difference (Bootstrap Value (Bootstrap Value
diagonal elements critical- (s) critical- (s)
value) value)
Renewable 3.565 0.643 − 1.231 − 4.256
energy use Level First-difference
GDP (economic 109.855 0.811 − 2.172 − 3.114
Renewable − 0.7846 0.5500 − 6.9489 0.0000 I(1)
growth)
energy use (-2.8246) (-2.4430)
Environment 17.999 0.249 − 3.806 − 5.678
GDP (economic − 0.0535 0.0000 − 8.1001 0.0000 I(0)
technology
growth) (1.9746) (-3.0646)
Environmental 5.528 0.407 − 1.737 − 4.127
Environment − 7.7043 0.0000 − 7.3633 0.0000 I(0)
tax
technology (-2.3043) (-2.7416)
Foreign direct 16.675 0.248 − 3.453 − 5.600
Environmental − 3.0231 0.9900 − 6.4069 0.0000 I(1)
investment
tax (-3.4258) (-1.7331)
Ecological 14.812 0.380 − 2.027 − 5.105
Foreign direct − 4.8263 0.3900 − 5.1417 0.0000 I(1)
footprint
investment (-10.1443) (-3.2431)
Government 21.519 0.560 − 2.014 − 4.852
Ecological − 0.0853 0.2600 − 5.0068 0.0000 I(1)
quality
footprint (-0.1905) (-2.1458)
CIPS-Critical values at Government − 0.0167 0.2500 − 4.0123 0.0000 I(1)
quality (-0.0392) (-1.4922)
10 % − 2.04
5% − 2.11
1% − 2.23
[44]. Thus, improving the ecological system leads the world toward RNE
use instead of traditional energy sources [45–47]. According to
with FDI on RNE and ECF. Ref. [48]; and [49]; NRNE consumption has wide-ranging negative
environmental implications for the world [50]. Abundant literature has
2. Literature review and hypothesis development established that consuming NRNE harms the ecological system and en
ergy security [51]. For instance Ref. [52], discovered that NRNE steered
Monitoring and evaluating GHG emissions has become integral to the environmental degradation in European Union. Similarly [53–55],
the international climate policy agenda [40–43]. Accordingly, RNE advocated that non-renewable sources are primarily responsible for the
sources have been acknowledged as non-polluting growth indicators deterioration of the environment, whereas the consumption of RNE
6
Table 4
Note: Robust standard errors in parentheses***p < 0.01, **p < 0.05, *p < 0.1 The location and scale coefficients can vary between different quantiles. This variability enables capturing heterogeneity in the interactions
− 0.00313*
Slope homogeneity.
(0.00174)
(0.00342)
0.0690**
(0.0917)
(0.0347)
0.00220
0.235**
(0.794)
qtile90
Models Statics P-value
0.871
Renewable Energy
Delta 19.954 0.000

Adj-delta 23.924 0.000
− 0.00305*
(0.00159)
(0.00311)
0.223***
Ecological Footprint
(0.0837)
(0.0316)
0.00229
0.0589*
(0.726)
qtile80
0.873
Delta 12.754 0.000
Adj-delta 15.291 0.000
Higher quantile
− 0.00295**
(0.00143)
(0.00277)
Table 5
0.208***
(0.0750)
(0.0280)
0.00241
0.0465*
(0.652)
qtile70
Co-integration.
0.876
Ecological footprint model
Westerlund co-integration Gt Ga Pt Pa
statistics − 2.623 − 5.134 − 14.261 − 4.649
− 0.00285**
(0.00131)
(0.00248)
0.194***
(0.0677)
(0.0249)
Probability values 0.004 1.000 0.035 0.997
0.00252
(0.590)
qtile60
0.0340
0.878
Renewable energy consumption model
Westerlund co-integration Gt Ga Pt Pa
statistics − 2.585 − 0.176 − 6.387 − 0.157
− 0.00274**
Probability values 0.000 1.000 0.999 1.000
(0.00122)
(0.00225)
0.178***
(0.0623)
(0.0223)
0.00264
(0.545)
qtile50
0.0208
0.881
contributes to environmental improvement [56–59].
Despite RNE being a strategic solution to improve the environment,
Middle Quantile
it is an economic growth-oriented factor [44]. Renewable energy tech
nology is crucial in powering industrial production and residential sec
− 0.00264**
− 0.00849
(0.00120)
(0.00214)
0.164***
tors, providing sustainable energy solutions for various economic
(0.0596)
(0.0208)
0.00275
(0.527)
qtile40
0.883*
activities and domestic needs [21,22,60]; Zhaohui et al., 2020) [61].
provides empirical evidence supporting the potential of nuclear energy
to contribute significantly to South Korea’s sustainable development
initiatives. In this way, RNE has both consumption and production side
effects [62]. research showed that RNE usage favorably impacts eco − 0.00256**
(0.00122)
(0.00213)
0.000966
(0.0596)
(0.0205)
0.00284
0.153**
nomic growth. However [63], ascertained that the energy sector and
(0.529)
qtile30
0.885*
blue economic indicators exhibit insufficient progress towards achieving
carbon neutrality objectives. Additionally, the above research is mostly
done from an environmental point of view. The existing body of research
examining the relationship between RNE consumption and economic
− 0.00249**
growth is constrained in scope and comprehensive analysis. For instance

(0.00127)
(0.00218)
(0.0611)
(0.0208)
0.00985
0.00292
0.142**
(0.545)
qtile20
Ref. [64], emphasized the significant interconnection between economic

0.887
and climate change challenges. Consequently, evaluating the in

terrelationships between RNE consumption and economic growth would
between variables at various points within the conditional distribution.
offer a valuable contribution to the field. The following hypotheses are

Lower Quantile
put forward.
− 0.00240*
(0.00137)
(0.00233)
(0.0647)
(0.0224)
0.00302
0.128**
(0.583)
qtile10
0.0214
Hypothesis-l (Hl). Does the economic growth of Belt and Road

0.889
economies contribute to enhancing renewable energy consumption?

Hypothesis-2 (H2). Is economic growth beneficial to improving the
ecological footprint of Belt and Road economies?
− 0.000243
− 0.000269
(0.000629)
− 0.0298**
Governments are urged to make environmental policies that limit the

− 0.00585
(0.00119)
(0.0318)
(0.0122)
(0.279)
The renewable energy consumption model.
0.0351
use of fossil fuels to lower GHG emissions [65]. Environmental taxes are
scale
the government’s most effective policy to lower the footprint [32,66]. As

cited in Refs. [60,67], the environmental tax aims to regulate pollution,
protect the environment, and internalize the negative externalities
linked to environmental degradation. The environmental tax gained
− 0.00275**
(0.00123)
(0.00227)
popularity as a protector of the environment during the Kyoto Protocol

0.179***
− 0.0219
(0.0624)
(0.0223)
0.00263
location
(0.548)
0.880
in the late 1990s [68]. conducted pioneering research by employing

input-output analysis to evaluate the effects of environmental taxes on
Dependent (Rne)
reducing CO2 emissions in Japan. Their study demonstrated a significant

impact of environmental taxes in improving ecological conditions.
Variables
Similarly [69], highlighted that environmental taxes help to reduce

Constant
Table 6
entech
carbon emissions by contributing to higher fossil fuel prices, leading to

envtx
GDP
fdi
lower fossil fuel consumption. Some other pieces of evidence from the
7
Table 7
Ecological footprint model.
Dependent (Ecf ) Lower Quantile Middle Quantile Higher quantile
Variables location scale qtile10 qtile20 qtile30 qtile40 qtile50 qtile60 qtile70 qtile80 qtile90
GDP 0.916*** 0.0366 0.858*** 0.876*** 0.890*** 0.904*** 0.915*** 0.929*** 0.943*** 0.955*** 0.975***
(0.0753) (0.0425) (0.103) (0.0907) (0.0824) (0.0774) (0.0754) (0.0762) (0.0803) (0.0859) (0.0992)
fdi − 0.00108 0.000818* 0.000218 0.000171 0.000502 0.000802 0.00106 0.00136 0.00167* 0.00193* 0.00238**
(0.00102) (0.000472) (0.00140) (0.00126) (0.00116) (0.00108) (0.00103) (0.000999) (0.000996) (0.00102) (0.00112)
envtx 0.000678 − 0.00597 0.0102 0.00733 0.00492 − 0.00273 − 0.000845 − 0.00133 − 0.00361 − 0.00553 − 0.00880
(0.0287) (0.0148) (0.0382) (0.0340) (0.0312) (0.0295) (0.0288) (0.0289) (0.0301) (0.0318) (0.0361)
entech − 0.000870 − 0.00226** 0.00273 0.00165 0.000737 − 9.18e-05 − 0.000807 − 0.00163 − 0.00249 − 0.00322 − 0.00446
(0.00220) (0.00112) (0.00285) (0.00254) (0.00235) (0.00224) (0.00220) (0.00222) (0.00233) (0.00247) (0.00281)
Constant − 4.463*** 0.0366 − 4.521*** − 4.504*** − 4.489*** − 4.475*** − 4.464*** − 4.451*** − 4.436*** − 4.425*** − 4.405***
(0.671) (0.381) (0.925) (0.810) (0.735) (0.689) (0.671) (0.677) (0.713) (0.763) (0.883)
Note: Robust standard errors in parentheses***p < 0.01, **p < 0.05, *p < 0.1.
literature supports the role of environmental tax policy in reducing environmental laws is a source of environmental degradation. At the
carbon emission [69–73]. In contrast [74], observed a lack of significant same time [22], found that carbon emission is controlled by institutions
impact of carbon taxes on CO2 levels across the panel of countries, and improved energy efficiency by preventing corruption in BRICS and
except Finland. It is concluded that taxes are prominent in improving Next-11 countries [91]. study demonstrated that democratic countries
environmental quality. Most of the literature highlights the significance could reduce energy consumption inequalities between energy sources
of environmental taxes in the context of pollution. In contrast, the sig [24]. found that the institutional impact is vigor to reduce carbon
nificance of environmental taxation for RNE has received comparatively emissions. Despite a few studies, the importance of government quality
less attention. So, this study addresses this gap by incorporating an in promoting clean energy through taxes and technology is often
environmental tax’s influence on RNE consumption. Accordingly, the ignored. Therefore, to add up the literature, we develop the following
following hypothesis is recommended. hypothesis.
Hypothesis-3 (H3). Is environmental tax a vigorous policy to increase Hypothesis-5 (H5). Is government quality of B&R economies impor
RNE consumption and reduce the ECF in Belt and Road economies? tant to mobilize environmental technology, environmental taxations,
Environmental technology is crucial for preventing further depletion and FDI to raise RNE consumption and reduce ecological footprint?
of natural resources, safeguarding our energy supply, and stimulating Fig. 3 explains the hypotheses, illustrating the direct and indirect
economic expansion (S [75]. According to Ref. [30]; the evolution of relationships between the relevant parameters.
digital and information technologies positively increases energy usage
efficiency. Similarly [76–78], have made an argument that technolog 3. Literature gap
ical innovation can improve energy efficiency and the environment.
Improvements in energy technology can help reduce reliance on The literature review reveals that previous studies have placed more
polluting resources like fossil fuels [32,79,80]. So, on the one hand, importance on the relevance of RNE to the environment (Cui et al.,
environmental technology promotes cleaner technology and energy ef 2023; [34,41]. Some evaluated the role of RNE and environmental tax in
ficiency, while on the other hand, it reduces the carbon footprint [81]. ecological stability (Shayanmehr et al., 2023). However, the environ
concluded from their research that implementing RNE policies in mental tax impact on promoting RNE seems less focused, resulting in a
fluences environmental technology development. Additionally, the persistent gap in this area. Similarly, there is a lack of emphasis on
study conducted by Ref. [82] revealed that the implementation of green environmental technology and FDI to promote RNE, and adequately
technology has the potential to foster a sustainable ecosystem among the addressing the interplay between these variables in the updated
five sovereign Nordic nations. econometric framework is still lacking. A significant gap in the literature
[83,84]; technological innovations facilitate the efficient develop is the government’s involvement in facilitating the implementation of
ment of machinery equipment through the implementation of new RNE sources. The government has the potential to serve as an interme
technical applications. This, in turn, directly improves energy efficiency diary between nations, facilitating the promotion of investments in clean
by reducing energy consumption [85]. examined Chinese provincial energy initiatives. Moreover, the government can enact environmental
data and found that environmental technologies provide a solid system taxation policies and employ advanced technologies to prohibit pollu
solution to mitigate carbon pollution. Weixian and Fang (2010) rec tion and incentivize the adoption of RNE sources. Therefore, this study
ommended that ecological innovations play a positive role in techno bridges the existing gap by examining the role of government quality in
logical domains and averting environmental pollution. Other studies, promoting RNE and reducing the ecological footprint by incorporating
such as [58,86,87] have also acknowledged the positive impact of the direct and indirect effects (mediation effects) of government quality
technology in fostering environmental progress [88]. affirmed the pos with environmental technology to mobilize environmental tax, with FDI
itive influence of clean technologies to sustain the environment quality on renewable energy and ECF.
in the United States. Similarly [89], study endorsed the promotion of
technological inventions to limit carbon emissions. Based on the above 4. Model and methodology
premise, the following hypothesis is formulated.
Environmental pollution caused by fossil fuels has become a colossal
Hypothesis-4 (H4). Is environmental technology potent for promot
concern [91]; Yasmeen et al., 2021). According to the "Intergovern
ing RNE consumption and reducing the ECF in Belt and Road
mental Panel on Climate Change," renewable energy can limit the
economies?
ecological footprint. This research delves into the question of how
The institutional configuration is necessary to mobilize the invest
governments in B&R economies could foster the development of envi
ment in environmental technology and tax policy application to promote
ronmental technology and the implementation of tax policies (See ap
the use of RNE and decrease the ECF in B&R economies. Concerning this
pendix Table A1 for countries list). The selection of the study’s timeline
[32,79], show that political regimes are driving factors in improving
(1996–2018) was based on the accessibility of data. The countries
energy efficiency. According to Ref. [90]; the flexibility of
8
included in the study were also selected using the same criterion. The
− 0.000816
basic models of the present study are as follows.
− 0.00324*
(0.00175)
5.668***
74.02***
(0.0447)
(0.0543)
0.252**
0.116**
(1.376)
(0.110)
(12.28)
qtile90
Rneit = f (GDPit , fdiit , envtxit , entechit , GQit ) (1)
Ecfit = f (GDPit , fdiit , envtxit , entechit , GQit ) (2)
Rne & Ecf are the RNE consumption [92] and ecological footprint [93]
− 0.00312**
(0.00155)
0.000689
5.296***
0.257***
69.26***
produced by the B&R economies. Environmental technologies (entech)
(0.0396)
(0.0957)
(0.0475)
0.122**
(1.234)
(11.05)
qtile80
are an important detriment to RNE consumption and the ECF. Therefore,

patents in environmental technology are used for technological inno
vation. Patents serve as important throughout the technological life
Higher quantile
cycle. It allows competing technology to be copyrighted and permits

− 0.00302**
third parties to extend revenue opportunities through research and

(0.00141)
4.889***
0.261***
0.129***
64.07***
(0.0345)
(0.0850)
(0.0408)
0.00233
development. It’s a method or a technical solution to a problem that

(1.084)
(9.703)
qtile70
offers a new way of doing things. While foreign direct investment (fdi) is
a significant channel for transferring energy technology in the host
countries. According to Ref. [94], foreign direct investment determines
RNE and ecological footprint in B&R economies. Technological
− 0.00290**
advancement is insufficient to approach the green economy or protect

(0.00129)
4.584***
0.265***
0.134***
60.18***
(0.0311)
(0.0731)
(0.0366)
0.00356
(0.990)
(8.864)
qtile60
the environment. There is a dire need for other policies to keep a check
and balance pollution-producing units. Therefore, environmental tax
(envtx) is used as an ecological and RNE determinant. The government
can ensure a green environment through research and development and
environmental policies such as taxes, green energy subsidies, and
− 0.00279**
(0.00122)
4.189***
0.270***
0.140***
55.14***
environmental protocols. Briefly, the government is essential in mobi

(0.0274)
(0.0633)
(0.0328)
0.00516
(0.900)
(8.058)
qtile50
lizing the all-state actors actively and responsively. Therefore, the pre
sent study incorporated the government’s effectiveness as a
government’s quality (GQ) [95].
Middle Quantile
The government can play a direct and indirect role in mobilizing

− 0.00267**
technical development in the environmental sector. Similarly, it can

(0.00119)
3.934***
0.274***
0.144***
51.89***
(0.0257)
(0.0553)
(0.0314)
0.00619
incentivize investors to invest in less-profit projects to spread RNE

(0.866)
(7.731)
qtile40
consumption. The government can attract foreigners to RNE sectors as

China and B&R countries are starting many projects on RNE sources.
Therefore, the study adds the interactive term of government’s quality to
assess the mobilization of foreign investors, technology, and taxes.
− 0.00257**
(0.00122)
3.740***
0.278***
0.147***
49.40***
(0.0247)
(0.0510)
(0.0311)
0.00697
(0.856)
(7.637)
Rneit = f (GDPit , fdiit × GQit , envtxit × GQit , entechit × GQit , GQit )(3)
qtile30
Ecfit = f (GDPit , fdiit × GQit , envtxit × GQit , entechit × GQit , GQit )(4)
Wheres, fdiit × GQit , envtxit × GQit , entechit × GQit are the interactive
− 0.00249*
terms of government quality with foreign direct investment, environ

(0.00127)
3.530***
0.281***
0.151***
46.72***
(0.0241)
(0.0496)
(0.0316)
0.00782
(0.859)
(7.663)
qtile20
mental tax, and technology. The study will assess the government’s in
direct (mediation) effect on RNE and ecological footprint.

Renewable energy, environment technology, and government quality model.
Lower Quantile
4.1. Data, sources, and descriptive statistics

− 0.00238*
(0.00138)
3.285***
0.286***
0.155***
43.60***
(0.0240)
(0.0514)
(0.0329)
0.00881
(0.885)
(7.903)
qtile10
The Ecf (Ecological Footprint) data is measured in units of global

hectares per person and can be accessed at the following link:
(https://www.footprintnetwork.org/resources/data/). Rne denotes
renewable energy consumption and is measured as a total final energy
consumption percentage. Lastly, GDP represents economic growth and
− 0.000284
(0.000649)
− 0.00318
10.04***
− 0.0110
− 0.0130
(0.0130)
(0.0366)
(0.0182)
is estimated in terms of GDP per capita, with the values expressed in

(0.431)
(3.856)
0.786*
scale
constant 2015 US dollars. fdi is measured as foreign direct investment,

inflows (% of GDP). These variables (Rne, GDP, fdi) data collected from
World Development Indicators. Patents (entech) are measured as envi
ronment technologies –Total, Percentage. While envtx is measured as
− 0.00280**
Environmental tax Total, % of GDP. entech & envtx indicators are

(0.00122)
4.346***
0.269***
0.137***
57.14***
(0.0288)
(0.0642)
(0.0341)
0.00452
location
(0.927)
(8.279)
available at (https://data.oecd.org/envpolicy/environmental-tax.
htm#indicator-chart). Government quality is measured by the govern
ment effectiveness index (http://info.worldbank.org/governance/wgi/)
Dependent (Rne)
presented by Kaufmann et al. (2010). The index utilized in this study

measures public perception of the government’s performance in key
Variables
Constant
areas such as public service quality, civil service independence, policy

entech ×
Table 8
entech
GQ
formulation and implementation effectiveness, and the reliability of

GDP
GQ
fdi
policy commitments. The estimated values of this index fall within a
9
Table 9
Renewable energy, environmental tax, and government quality model.
Dependent (Rne) Lower Quantile Middle Quantile Higher quantile
GDP 4.138*** 0.838** 3.015*** 3.256*** 3.470*** 3.707*** 3.989*** 4.413*** 4.764*** 5.171*** 5.528***
(0.910) (0.394) (0.916) (0.888) (0.876) (0.876) (0.896) (0.959) (1.038) (1.150) (1.254)
fdi − 0.00484 − 0.00742*** 0.00510* 0.00297 0.00108 − 0.00103 − 0.00352 − 0.00727* − 0.0104** − 0.0140** − 0.0171***
(0.00352) (0.00199) (0.00268) (0.00267) (0.00278) (0.00298) (0.00335) (0.00401) (0.00465) (0.00544) (0.00618)
envtx 0.117 − 0.335** 0.565** 0.469* 0.384 0.289 0.176 0.00705 0.133 0.296 0.438
(0.283) (0.155) (0.276) (0.265) (0.260) (0.262) (0.275) (0.309) (0.349) (0.402) (0.453)
GQ 1.672** 0.115 1.518*** 1.551*** 1.581*** 1.613*** 1.652*** 1.710** 1.758** 1.814* 1.863*
(0.669) (0.349) (0.570) (0.561) (0.567) (0.591) (0.637) (0.737) (0.840) (0.973) (1.097)
envtx × 0.482 0.341** 0.0255 0.123 0.210 0.307 0.421 0.594* 0.737** 0.902** 1.048**
GQ (0.310) (0.161) (0.314) (0.300) (0.294) (0.294) (0.303) (0.333) (0.370) (0.422) (0.472)
Constant 54.98*** 10.88*** 40.41*** 43.54*** 46.31*** 49.40*** 53.05*** 58.55*** 63.11*** 68.39*** 73.03***
(8.195) (3.540) (8.192) (7.953) (7.863) (7.880) (8.092) (8.683) (9.402) (10.41) (11.30)
range of approximately − 2.5 (indicating weak governance quality) to benefits induce us to use this approach. For instance, it is a flexible
2.5 (representing strong governance quality). This index is a valuable method that can provide reliable estimates of conditional quantiles in
tool for assessing and quantifying the quality of governance based on the various settings. PMMQR uses all available information from the data,
general population’s perceptions. Fig. 4 shows the government quality rather than just a specific quantile, to estimate the parameters of in
of each country. Accordingly, Austria, New Zealand, Luxembourg, terest. It leads to more accurate estimates and improved inference. This
Singapore, Cyprus, China, and the Czech Republic have the best gov estimator demonstrates flexibility by enabling the imposition of
ernment quality and effective policies. However, Ukraine is showing less parameter restrictions across a range of moments relevant to the pa
quality of government effectiveness. Further, Figs. 5 and 6 show the rameters of interest. The PMMQR estimator enhances efficiency by
nexuses between environmental technology, environmental tax, and incorporating information across quantiles, effectively leveraging the
government quality. The graphical analysis showed that government available data to its fullest extent [100]. Therefore, we apply this
quality is positive and important for developing environmental tech strategy to get efficient outcomes. Our primary empirical strategy is to
nology and implementing the environmental tax policy. Because gov identify whether the determinants of RNE and ecological footprint
ernments with higher governance quality prioritize environmental exhibit varying effects across the conditional distribution of RNE and
protection and recognize the importance of addressing environmental ECF in B&R countries. The extension of median regression analysis to
issues, these governments may also have more effective institutions, other quintiles can be formulated as follows:
policies, and regulations to enforce environmental standards and impose
Qy (τ|Xit ) (5)
taxes on activities that harm the environment. The positive trend be
tween the core variables is a preliminary general analysis. However, the The conditional quantile of a random variable can be stated as:
study will find the long-run direct and indirect co-efficient effects in the ( )
next section and their statistical significance. Yit = αi + X′it β + θi + Z′it ψ Uit (6)
The descriptive statistics of all concerned indicators are given in
Table 1. The results show that the foreign direct investment inflow Where, Yit andX′it are representing the dependent and endogenous vari
(371.36), government quality (146.365), and GDP (120.95) have sig ables. While (α, β, θ, ψ) are parameters to be measured. The probability
nificant variations compared to others. Environmental technology P{θi + Z′it ψ > 0} = 1. (αi , θi ), i = 1, 2, ..n, represent the discrete i fixed
(62.957) and tax (63.129) show fewer variations. Fig. 7 displays scatter effects. In regression Z′it represents k-vector of X [101,102].
plots and distribution overlays of the variables. Uit shows an unobserved random variable distributed [96]. Thus,
equation (6) suggests the following;
4.2. Methodology: the method of moment’s quantile regression model
Qy (τ|Xit ) = (αi + θi q(τ)) + X′it β + Z′it ψq(τ) (7)
The present paper uses the augmented Panel Method of Moment’s
Quantile Regression (PMMQR) introduced by Ref. [96] to investigate In equation (7), Qy (τ|Xit ) describes the quantile distribution of the
the concerned research model of the B&R panel. Traditional regression dependent variables. In this method, the computational problems can be
methodologies may fail to effectively identify significant relationships minimized by using the penalty term of estimating.
due to their emphasis on mean effects [97]. In their crucial work [98], The MMQR version, which includes the relevant variables of the
introduced panel quantile regression. This technique can provide basic model, is stated as follows:
limited insights into the weak correlation between the conditional QRneit (τk |αi , xit ) = αi + β1τ GDPit + β2τ fdiit + β3τ envtxit + β4τ entechit
means of two variables [97]. The PMMQR technique incorporates fixed
+ β5τ GQit (8)
effects and proves valuable in capturing the covariance effects as a
crucial determinant of RNE consumption and ecological footprint,
particularly under conditions of conditional heterogeneity. PMMQR is QEcfit (τk |αi , xit ) = αi + β1τ GDPit + β2τ fdiit + β3τ envtxit + β4τ entechit
superior for managing individual effects that affect the entire distribu + β5τ GQit (9)
tion [99]. Generally, this methodology is applied to determine the
conditional median of several responded quantiles. Several other And the equations for the mediation effect of government quality with
10
Table 10
R. Yasmeen et al.
Renewable energy, FDI, and government quality model.

Dependent (Rne) Lower Quantile Middle Quantile Higher quantile
variables location scale qtile10 qtile20 qtile30 qtile40 qtile50 qtile60 qtile70 qtile80 qtile90
GDP 0.111* 0.0251 0.0754 0.0858 0.0923 0.0994* 0.109* 0.120* 0.131* 0.142* 0.151*
(0.0617) (0.0299) (0.0638) (0.0603) (0.0593) (0.0592) (0.0610) (0.0656) (0.0719) (0.0804) (0.0877)
fdi 0.00247*** − 0.00114*** − 0.00410*** − 0.00363*** − 0.00334*** − 0.00302*** − 0.00259*** − 0.00208** − 0.00160 − 0.00109 − 0.000695
(0.000800) (0.000440) (0.000786) (0.000733) (0.000729) (0.000741) (0.000789) (0.000879) (0.000990) (0.00113) (0.00126)
entech 0.00287 − 0.00123 0.00464** 0.00413* 0.00381* 0.00346 0.00300 0.00245 0.00193 0.00138 0.000949
(0.00223) (0.00117) (0.00235) (0.00220) (0.00215) (0.00214) (0.00220) (0.00238) (0.00264) (0.00297) (0.00326)
envtx − 0.0146 − 0.0257** 0.0223 0.0117 0.00502 0.00224 0.0119 0.0234 0.0343 0.0458 0.0548
(0.0215) (0.0116) (0.0207) (0.0196) (0.0195) (0.0199) (0.0212) (0.0237) (0.0267) (0.0305) (0.0335)
GQ 0.176*** 0.0264 0.138*** 0.149*** 0.156*** 0.163*** 0.173*** 0.185*** 0.196*** 0.208*** 0.217***
(0.0343) (0.0249) (0.0482) (0.0415) (0.0381) (0.0356) (0.0344) (0.0360) (0.0402) (0.0471) (0.0533)
fdi × GQ 0.00679*** 0.000537 0.00602*** 0.00625*** 0.00639*** 0.00654*** 0.00674*** 0.00698*** 0.00721*** 0.00745*** 0.00764***
(0.00128) (0.000753) (0.00167) (0.00148) (0.00139) (0.00133) (0.00128) (0.00132) (0.00142) (0.00159) (0.00175)
Constant 1.383** 0.0752 1.275** 1.306** 1.326** 1.347*** 1.375*** 1.409** 1.441** 1.474** 1.501**
(0.539) (0.261) (0.565) (0.531) (0.520) (0.518) (0.532) (0.570) (0.625) (0.697) (0.762)
11
Table 11
Ecological footprint, environment technology, and government quality model.
variables location scale qtile10 Qtile20 qtile30 qtile40 qtile50 Qtile60 qtile70 qtile80 qtile90
GDP 0.968*** 0.0475 0.893*** 0.915*** 0.933*** 0.950*** 0.966*** 0.985*** 0.999*** 1.017*** 1.042***
(0.0761) (0.0428) (0.106) (0.0932) (0.0849) (0.0792) (0.0763) (0.0763) (0.0789) (0.0848) (0.0966)
fdi 0.00103 0.000782* 0.000197 0.000172 0.000467 0.000744 0.00100 0.00192* 0.00242** 0.00185* 0.00225**
(0.00101) (0.000469) (0.00137) (0.00124) (0.00114) (0.00106) (0.00101) (0.00102) (0.00113) (0.00102) (0.00111)
entech 0.00112 − 0.00150 0.00348 0.00277 − 0.00221 − 0.00167 − 0.00117 − 0.000576 − 0.000116 − 0.000450 − 0.00122
(0.00194) (0.00111) (0.00269) (0.00236) (0.00214) (0.00200) (0.00194) (0.00195) (0.00203) (0.00219) (0.00250)
GQ − 0.962*** 0.0266 − 0.920*** − 0.933*** − 0.943*** − 0.953*** − 0.962*** − 0.972*** − 0.980*** − 0.990*** − 1.005***
(0.0736) (0.0422) (0.102) (0.0890) (0.0810) (0.0760) (0.0737) (0.0744) (0.0775) (0.0835) (0.0975)
entech × GQ − 0.00843** − 0.00300 − 0.00372 − 0.00513 − 0.00627 − 0.00733** − 0.00833** − 0.00953** − 0.0104*** − 0.0116*** − 0.0131***
(0.00359) (0.00203) (0.00467) (0.00413) (0.00381) (0.00363) (0.00360) (0.00371) (0.00390) (0.00428) (0.00495)
Constant − 4.902*** − 0.0663 − 4.798*** − 4.830*** − 4.855*** − 4.878*** − 4.900*** − 4.927*** − 4.947*** − 4.972*** − 5.006***
(0.682) (0.385) (0.955) (0.838) (0.762) (0.711) (0.684) (0.683) (0.706) (0.758) (0.865)
Energy Strategy Reviews 50 (2023) 101258
Table 12
Ecological footprint, environment tax, and government quality model.
variables location scale qtile10 qtile20 qtile30 qtile40 qtile50 qtile60 qtile70 qtile80 qtile90
GDP 0.943*** − 0.00916 0.958*** 0.954*** 0.950*** 0.947*** 0.944*** 0.940*** 0.937*** 0.934*** 0.930***
(0.0742) (0.0430) (0.0997) (0.0871) (0.0785) (0.0748) (0.0740) (0.0762) (0.0811) (0.0890) (0.101)
fdi 0.00116 − 0.00142 0.000197 0.000197 0.000575 0.000866 0.00111 0.000822* 0.00171* 0.00202* 0.00238**
(0.00100) (0.000995) (0.00134) (0.00121) (0.00111) (0.00104) (0.00101) (0.000455) (0.00100) (0.00104) (0.00112)
envtx − 0.0419 0.0277* − 0.0876*** − 0.0743** − 0.0615** − 0.0517** − 0.0433 − 0.0329 − 0.0231 − 0.0127 − 0.000606
(0.0265) (0.0150) (0.0335) (0.0295) (0.0270) (0.0262) (0.0264) (0.0277) (0.0297) (0.0327) (0.0373)
GQ − 0.344*** 0.132** − 0.148 − 0.498*** − 0.437*** − 0.390*** − 0.351*** − 0.301*** − 0.255** − 0.205* − 0.561***
(0.0969) (0.0521) (0.132) (0.108) (0.0996) (0.0965) (0.0967) (0.101) (0.107) (0.117) (0.120)
envtx × 0.138*** − 0.0509* − 0.0622 0.0845*** − 0.174*** − 0.156*** − 0.141*** − 0.121** − 0.104* − 0.197*** − 0.222***
GQ (0.0468) (0.0268) (0.0690) (0.0603) (0.0460) (0.0454) (0.0465) (0.0498) (0.0542) (0.0495) (0.0554)
Constant − 4.632*** 0.359 − 5.223*** − 5.051*** − 4.886*** − 4.759*** − 4.651*** − 4.515*** − 4.389*** − 4.255*** − 4.098***
(0.661) (0.384) (0.896) (0.779) (0.702) (0.668) (0.660) (0.678) (0.721) (0.791) (0.894)
foreign direct investment, environmental tax, and technology are as economic and social decisions. Further, an economic shock in one
follows: country can be transmitted to other countries.
QRneit (τk |αi , xit ) = αi + β1τ GDPit + β2τ fdiit + β3τ fdiit × GQit + β4τ envtxit + β5τ envtxit × GQit + β6τ entechit + β7τ entechit × GQit + β8τ GQit (10)
QEcfit (τk |αi , xit ) = αi + β1τ GDPit + β2τ fdiit + β3τ fdiit × GQit + β4τ envtxit + β5τ envtxit × GQit + β6τ entechit + β7τ entechit × GQit + β8τ GQit (11)
The second important test is the slope heterogeneity of the B&R

The variables have been described earlier. countries. The slope coefficient may be heterogeneous across the B&R
panel as the world’s growth rates and technological levels are remark
5. Results and discussion ably indifferent (Jiang et al., 2020). Therefore, there is a dire need to
check the cross-sectional homogeneity [104], and the test description is
Before conducting the primary regression, the study followed four as follows:
essential prerequisite econometric steps: i) Cross-sectional dependence √̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅
√ (
test (CD), ii) slop homogeneity (SH), iii) Unit-root testing, and iv) co- √ N − 1̃s (̃z )
̃ adj = √N √̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅ (14)
it
Δ
integration establishment. The study applied the panel method of mo var̃s(̃zit )
ment’s quantile regression for the long-run analysis. Lastly, the study
conducts a causality analysis. ( )
Where, E(̃ zit ) = 2k T − k − T1 + 1 . The
zit ) = k, and the variance var̃s(̃
results of using this methodology are given in Table 4. The results show
5.1. Preliminary testing methodology and results
the country-specific heterogeneity across the panel, implying that
regression parameters are heterogeneous for each cross-sectional unit.
5.1.1. Dependence and slope homogeneity testing
Therefore, the PMMQR is suitable as it lets heterogeneity across the
Cross-dependence can be expected in the present study due to foreign
panel.
direct investment and energy assimilation. Therefore, the analysis for
cross-dependence has become a prerequisite to avoid bias and size dis
5.1.2. Panel unit root testing and co-integration determination
tortions. By ignoring this test, the study may produce inefficient out
Traditional panel unit roots (Phillip Perron, Levin, Lin, and the Chu)
comes [103]. The cross-dependence test is stated as follows:
are inefficient in case of dependence. Therefore, we followed the second-
√̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅
2T ∑N− 1 ∑N generation unit root CIPS test, which is competent in cross-sectional
CD = ∂ij ⟶N(0, 1) (12) dependence [105]. The specification of the CIPS panel unit root test is
N(N− 1) i=1 j=i+1
presented as follows:
The ∂ij is the estimate of
∑
N
ti (N, Tm )
∑
T
∈it ∈jt CIPS(N, Tm ) = i=1 (15)
N
t=1
∂ij = (√̅̅̅̅̅̅̅̅̅̅̅
̅)√̅̅̅̅̅̅̅̅̅̅̅̅ (13)
∑ T
2
∑
T Table 2 presents the outcomes of the CIPS assessment. While Table 3
∈it ∈2jt
t=1 t=1 shows the [106] unit root findings with structural breaks. The findings
indicate that all variables exhibit stationarity after being differenced
Where the null hypothesis is as ∂ij = corr (∈it ∈jt ) = 0 for i ∕= j. The once I(1). Therefore, it is imperative to ascertain the presence of
alternative to being confirmed as ∂ij ∕
= 0 for i ∕
= j. co-integration among the variables. The cointegration experiments
The results of the CD are described in Table 2. The results indicate conducted in this study were based on the works of [107,108]. The
that the null hypothesis (the cross-sectional independence) is rejected at findings presented in Table 5 indicate evidence of co-integration among
the l% level, and the data of the B&R panel is cross-sectional interre the series.
lated. It signifies that B&R economies can affect each other through
12
5.2. Panel long-run assessments
− 0.0272***
− 0.0283**
− 24.01***
0.0188***
(0.00664)
− 0.192**
3.412***
(0.0127)
(0.0893)
(0.0102)
In this study, the PMMQR technique was employed to address spatial
− 0.683
(0.408)
(0.419)
(3.431)
qtile90
dependence and heterogeneity and extract long-run parameters. The
primary objective was to examine the direct influence of various factors
on RNE consumption and ecological footprint in the context of B&R
economies. The results were analyzed and presented in percentile dis
− 0.0203***
− 0.0172**
− 16.68***
tributions (including the 10th, 20th, 30th - lower quantile; 40th, 50th,
0.0135***
(0.00436)
(0.00831)
(0.00686)
2.395***
− 0.0573
(0.0562)
− 0.128
(0.262)
(0.268)
(2.204)
qtile80
60th - middle quantile; and 70th, 80th, and 90th - higher quantile) for
both RNE consumption and ecological footprint models. Specifically
focusing on RNE consumption, the findings, as depicted in Table 6,
reveal a positive and highly significant impact of GDP on increasing RNE
Higher quantile
consumption across all quantiles. The GDP impact is an essential indi
− 0.0171***
− 13.26***
0.0111***
− 0.00552
(0.00326)
(0.00655)
(0.00523)
− 0.0121*
1.920***
cator to evaluate the economic growth of each country and its dynamic
(0.0461)
− 0.131
(0.185)
(0.197)
(1.561)
qtile70
progression in the development process [95]. Its significant impact on

RNE consumption indicates that economies are concerned about RNE
sources. The economic expansion puts pressure on energy consumption.
Just focusing on fossil fuel consumption is not a permanent solution.
− 0.0155***
0.00987***
RNE is the alternate solution for long-term growth, depleting fossil fuel
− 11.54***
− 0.00948
(0.00274)
(0.00591)
(0.00447)
1.682***
− 0.0370
(0.0443)
reserves, and environmental concerns. Our results are consistent with

− 0.261
(0.149)
(0.164)
(1.262)
qtile60
[109,110], showing the positive influence of growth on RNE

consumption.
The impact of environmental technology is positive to increase the
RNE consumption in all quantile’s distribution, but insignificant. It is
− 0.0143***
0.00893***
− 10.23***
− 0.00749
(0.00238)
(0.00557)
(0.00393)
pertaining that RNE consumption rises with technological development,

− 0.360**
1.500***
− 0.0610
(0.0448)
(0.127)
(0.142)
(1.073)
qtile50
but country characteristics and growth status are also important. B&R
economies (sample countries) may not be very developed and prepared
enough to absorb environmental technology to increase RNE sources
Middle Quantile
significantly. The impact of foreign direct investment is negative to in

− 0.0132***
crease RNE consumption. The results of FDI are justified by arguing that
0.00811***
− 0.447***
− 9.085***
− 0.00576
(0.00209)
(0.00541)
(0.00350)
− 0.0821*
1.341***
(0.0464)
fossil fuels are the most consuming source. They also claimed that
(0.111)
(0.126)
(0.930)
qtile40
foreign direct investment is not directed to RNE sources.

Further stated that B&R economies spend significantly on fossil fuel
sources, discouraging RNE consumption. Developing nations have been
entangled in a vicious circle of poverty that forces them to focus on
− 0.0121***
0.00727***
− 0.536***
− 7.902***
comparative advantages [79]. Developing countries deliberately follow

− 0.00398
(0.00183)
(0.00537)
(0.00311)
− 0.104**
1.177***
(0.0988)
(0.0491)
(0.113)
(0.815)
qtile30
the less stringent policy to get comparative advantages in production

and allow dirty industry. Developing countries seek foreign investment,
and foreigners agree to locate production in less stringent environmental
countries to avoid the cost of strict environmental regulations and high
energy prices.
− 0.0106***
0.00616***
− 0.654***
− 6.343***
− 0.00162
(0.00157)
(0.00553)
(0.00270)
− 0.132**
An important policy tool for governments is the implementation of

0.960***
(0.0892)
(0.0539)
(0.104)
(0.717)
qtile20
environmental taxes. The study reveals a positive impact of environ

mental taxes on RNE consumption in most quantiles. However, the effect
is statistically insignificant in the lower and middle quantiles. Never
theless, in the higher quantile, the impact of environmental taxes is
Lower Quantile
− 0.00880***
significant and leads to a notable increase in RNE consumption. The

0.00476***
− 0.168***
− 0.803***
− 4.382***
− 0.00134
(0.00149)
(0.00598)
(0.00243)
0.688***
environment was the second priority, and there was no awareness of the
(0.0616)
(0.103)
(0.112)
(0.795)
qtile10
environmental consequences. So, the environmental tax might not be

Ecological footprint, FDI, and government quality model.
implemented or followed strongly. However, as people become aware of

environmental issues, tax is implemented effectively.
Further, there are two possible reasons for less effectiveness. There is
− 0.0925***
little revenue to be generated by environmental taxes. If environmental

− 0.00472*
− 0.382***
− 5.045***
0.00360**
0.00761**
(0.00169)
(0.00362)
(0.00254)
0.700***
(0.0311)
taxes are not generating significant revenue, it may lead to a perception

(0.100)
(0.110)
(0.846)
scale
that they are ineffective in changing behavior and reducing environ

mental harm. This could lead to a loss of support for the tax from the
public and policymakers, which could ultimately undermine the effec
tiveness of the tax in achieving its intended goals. Secondly, the gov
− 0.0146***
0.00918***
− 10.58***
(0.00249)
(0.00565)
(0.00408)
ernment’s role is crucial in activating environmental taxation. These

1.548***
(0.0447)
0.00802
location
0.334**
(0.140)
(0.150)
(1.179)
0.0547
results imply that the environmental tax should be imposed powerfully.

The results for ecological footprint are given in Table 7. The impact
Dependent (Ecf )
of GDP on ecological footprint is significantly positive at all quantiles,

suggesting that a one-unit increase in economic growth leads to an
variables
fdi × GQ
87.46 % (average) increase at lower quantile and 95.76 % (average) at

Constant
Table 13
entech
higher quantile in the B&R economy’s ecological footprint. The incre

envtx
GDP
GQ
fdi
ment in ecological footprint in the B&R economies is more than RNE
13
Fig. 8. Summary of result.
consumption (14 % at a lower quantile to 22.2 % average), which and government quality for RNE consumption. The impact of environ
revealed that economic growth supported RNE consumption at a lower mental tax was insignificant in raising RNE consumption. However,
rate. Further, B&R economies might be fossil fuel-based economic through government mediation, the impact of environmental tax turned
growth-oriented. Our results are consistent with [111]. Foreign direct out to be significant at higher quantiles to increase RNE consumption.
investment has a detrimental effect on the ecological system, with a According to Refs. [79,91,95], democracy improves environmental
positive contribution. However, the influence of foreign direct invest quality. Environmental taxation by governments gives consumers and
ment on the ecological footprint is insignificant in lower and middle companies the option to decrease their "footprint" on the environment.
quantiles, while it becomes significant in higher quantiles. The results As a result, the government can ensure low-cost solutions.
are verified by Ref. [112], who pointed out that foreign direct invest Robust institutional frameworks play a pivotal role in governing
ment is a source of pollution haven in BRICS states. economic activities and facilitating sectoral organization within a
The environmental tax policy impact on ecological footprint is country through the effective implementation of reforms [25]. There
negative but insignificant throughout the quantiles. The negative effects fore, the government can reform the environmental tax on effective
of environmental tax can be verified with [31]. However, the insignifi grounds and limit carbon activities. Similarly, Table 10 indicated that
cant can be justified by Ref. [69], who stated that environmental tax is foreign direct investment could be directed towards the RNE sector and
ineffective in preventing environmental degradation in Turkey. The bring clean investment to the B&R countries. From 2000 to 2014, tar
impact of environmental technology positively contributes to decreasing geted investment incentives, including feed-in tariffs, tradeable RNE
the ecological footprint but has an insignificant effect. The results are certificates, and public tenders, were pivotal in driving RNE investment
consistent with [31], who have found a negative association between in OECD and G20 countries. It is further highlighted that concrete and
carbon emission and innovations for OECD. The results of technology achievable policy reforms can lift investment in RNE. Institutions can
and policy indicators (environmental tax) drive us to investigate help market participants work together productively and encourage
governmental institutions’ role. The government makes the reforms resource use. Thus, it is evident that the government’s role is to mobilize
effectively and can set a green growth direction. investment in the RNE sector.
The results for ecological footprint-environmental technology are
given in Table 11. The result showed that environmental technology is
5.3. Panel long-run assessments with government quality insignificant throughout the quantiles. However, the role of government
is significantly positive in reducing the ecological footprint of B&R
Thus, the present study modifies the model and assesses the role of economies at all quantiles. The mediation role of government in
government quality directly and indirectly. The interaction terms of enhancing technological development to ecological improvement is
governmental quality with foreign direct investment, environmental influential in the middle and higher quantile. It implies that the gov
technology, and environmental tax policy are added for mediation ernment can control negative externalities, such as the physical envi
assessment. The results of RNE consumption with technology and gov ronment damaged by production processes. Institutions are important
ernment quality are given in Table 8. The results revealed that govern instruments for effectively executing market-based economies [114]. A
ment quality’s impact on increasing RNE consumption in B&R solid regulatory framework can boost economic growth while benefiting
economies is significantly positive at all quantiles. It implies that the the environment [115].
B&R governments favor RNE consumption promotion. Similarly, the B&R governments significantly implement taxation
Similarly, the mediation effect shows that the government effectively policies to improve environmental quality (Table 12). A well-
plays a role in stimulating environmental technology to increase the functioning government can more effectively enforce governmental
level of RNE consumption at all quantiles. Government is the main factor rules and emission restrictions. The results of government-FDI for
that can give incentives and work on weak points that hinder environ ecological footprint are given in Table 13. The results show that the
mental technology development [113] Yasmeen et al., 2021). Such as government can implement environmental regulation to attract clean
the government can provide funding to promote renewable technology investment, and thereby, strict environmental rules deter filthy industry
that reduces costs. They can help to conduct and increase collaborative lobbying in B& R economies. The results are defensible [112]. It implies
research between nations. Local governments encouraging a green that foreign direct investment policy efficiency can be higher with solid
workplace culture motivate citizens and businesses to minimize their institutions. Institutions maintain the FDI strategy and are a helper in
carbon footprint, creating a win-win situation for everyone. enhancing the environment and promoting economic development
In Table 9, the study adds the interaction term of environmental tax
14
[112]. To this end, the stated results are summarized in Fig. 8.
0.00671**
(0.00303)
0.522***
0.576***
8.225***
(0.0447)
(0.0864)
0.0776*
(0.116)
(0.155)
(0.993)
qtile90
0.0820
6. Robust analysis in perspective of the belt& road initiative
240
As a robustness framework, this study analyzed baseline models
choosing the date after the official declaration of the B&R initiative i-e,
2013 to 2018. The results for renewable energy and ecological footprint
0.00653**
(0.00268)
0.540***
0.165***
0.522***
7.958***
(0.0494)
(0.0770)
(0.108)
(0.155)
(0.924)
models are given in Tables 14 and 15. Most of the variable’s findings are
qtile80
0.0734
240
not dissimilar from the previous sections. For instance, the overall
impact of GDP (economic growth) is positive to increase RNE. However,
Higher quantile
it is also a reason to increase the ecological footprint as the economy

grows. The spillover of foreign investment inflow is positive in boosting
0.00642**
(0.00250)
0.550***
0.216***
0.490***
7.801***
(0.0491)
(0.0729)
RNE consumption at mid and higher quantiles. The impact of FDI is
(0.106)
(0.159)
(0.913)
qtile70
0.0683
insignificant for the ecological footprint. Environmental tax can increase
240
RNE consumption significantly. However, the impact of an environ
mental tax on ecological footprint is positive to reduce ecological foot
print but insignificant at lower quantiles. Environmental technology is
0.00633***
(0.00235)
also positive but insignificant in reducing the ecological footprint and

0.560***
0.260***
0.463***
7.667***
(0.0541)
(0.0705)
(0.105)
(0.165)
(0.918)
qtile60
0.0639
improving RNE consumption. The government is positive in limiting the

240
ecological footprint and enhancing RNE consumption. Results showed

that B&R countries might be directed toward RNE. However, there is a
need to focus on environmental policy with economic expansion (see
0.00611***
Table 15).
(0.00205)
0.581***
0.366***
7.344***
(0.0613)
(0.0697)
0.398**
(0.110)
(0.184)
(0.977)
qtile50
0.0534
240
7. Causality analysis
Panel long-run regression analysis could not account for the causal
Middle Quantile
relationship between the series, which can be a guiding principle for

− 0.00600***
policymakers and administrators.

(0.00194)
0.592***
0.419***
7.183***
(0.0655)
(0.0719)
(0.115)
(0.197)
(1.031)
In this study, the interrelationships were assessed using [116]

qtile40
0.0482
0.365*
240
panel-augmented Granger causality approach. DH causality is appro

priate as it involves heterogeneity issues. DH causality used Wbar and
Zbar statistics to produce reliable results. Wbar-statistics use average
statistics, while Zbar-statistics consider standard normal distribution
0.00585***
− 0.607***
(0.00184)
0.492***
6.958***
[116]. The results of the concerned series have been given in Table 16.
(0.0734)
(0.0776)
(0.125)
(0.217)
(1.133)
qtile30
0.0409
0.319
The results established the feedback causality between GDP and

240
renewable energy consumption, which can be referenced by Refs. [117,

118]. The present study exposed the two-way causation between envi
ronmental tax and renewable energy consumption, which is similar
− 0.00567***
[119].
− 0.625***
(0.00182)
0.577***
6.698***
− 0.0325
(0.0871)
(0.0872)
The utilization of technology contributes to the promotion of

(0.139)
(0.244)
(1.272)
qtile20
0.267
renewable energy consumption, but it is important to note that the

The renewable energy consumption model for Belt& Road nitiative (2013–2018).
240
development of environmental technologies is not necessarily driven by

RNE alone. Research suggests that foreign direct investment and RNE
consumption have a unidirectional relationship [111,120]. It contra
Lower Quantile
− 0.00536***
dicts the [92] study, which found the bidirectional causality between
− 0.656***
(0.00205)
0.728***
6.237***
− 0.0175
(0.0803)
FDI and RNE consumption. In contrast, governmental quality showed

(0.171)
(0.109)
(0.284)
(1.545)
qtile10
0.173
two-way support to improve RNE and, thus, the environment. Unilateral

240
relationships run from GDP to ecological footprint [121]. Similarly,

unilateral causality is established between environmental tax, environ
mental technology, foreign direct investment, governmental quality,
− 0.000413
− 0.200***
(0.00103)
and ecological footprint. Correspondingly, governmental quality

− 0.0413
− 0.0198
(0.0563)
(0.0272)
(0.0419)
(0.0825)
(0.511)
unilaterally influences tax, technology, and foreign direct investment. It

0.124
0.611
scale
240
is deduced from the results that government can have a significant role
in mobilizing foreign direct investment, tax effectiveness, and devel
oping environmental-related technology. However, it depends on the
− 0.00610***
state’s priorities, integrity, and wide resource utilization

(0.00204)
decision-making.
0.582***
0.370***
7.333***
(0.0557)
(0.0698)
Location
0.395**
(0.110)
(0.184)
(0.978)
0.0531
240
8. Conclusion
Dependent (Rne)
The countries along the B&R are seeking environmental reforms,

Observations
including technological inventions, environmental tax, and promotion

Variables
Constant
of RNE into the total energy mix to prevent ecological degradation and
Table 14
entech
envtx
achieve sustainable development. The present paper studied the pivotal

GDP
GQ
fdi
role of environmental technology and environmental taxation in
15
Table 15
The Ecological footprint model for Belt& Road initiative (2013–2018).
GDP 1.195*** 0.720*** 0.260 0.621*** 0.815*** 1.018*** 1.148*** 1.353*** 1.549*** 2.079*** 3.001***
(0.276) (0.182) (0.280) (0.198) (0.208) (0.231) (0.248) (0.289) (0.359) (0.535) (0.849)
fdi − 0.00586 − 0.00106 − 0.00438 − 0.00501 − 0.00527 0.00559 0.00579 0.00609 0.00638 0.00718 0.00852
(0.00472) (0.00275) (0.00380) (0.00371) (0.00391) (0.00430) (0.00460) (0.00512) (0.00568) (0.00741) (0.0105)
envtx 0.164 − 0.135 − 0.0989 − 0.000882 − 0.170 − 0.133* − 0.338** − 0.271** − 0.235** − 0.197* − 0.173*
(0.106) (0.102) (0.106) (0.132) (0.210) (0.0725) (0.166) (0.130) (0.118) (0.109) (0.104)
entech − 0.000503 0.00602 − 0.00732 − 0.00429 − 0.00268 − 0.000976 − 0.000108 − 0.00182 − 0.00347 − 0.00789 − 0.0156
(0.00845) (0.00571) (0.00977) (0.00839) (0.00811) (0.00813) (0.00830) (0.00884) (0.00965) (0.0126) (0.0187)
GQ − 0.622*** − 0.276 − 0.284 − 0.0686 − 0.768*** − 0.690*** − 0.640*** − 0.562** − 0.487* − 0.980*** − 0.842***
(0.225) (0.171) (0.413) (0.635) (0.177) (0.197) (0.214) (0.249) (0.292) (0.189) (0.167)
Constant − 7.931*** − 5.435*** − 0.873 − 3.602** − 5.061*** − 6.596*** − 7.575*** − 9.122*** − 10.60*** − 14.60*** − 21.56***
(2.304) (1.539) (2.130) (1.558) (1.686) (1.914) (2.077) (2.441) (3.015) (4.477) (7.000)
Observations 240 240 240 240 240 240 240 240 240 240 240
component of the overall energy mix.

Table 16 Nevertheless, by modernizing RNE sources, the share of RNE con
DH Granger causality for B&R economies. sumption can be further increased. The third and fourth hypotheses
Null Hypothesis W-bar Z-bar P-value Causality Deduction explore the influence of environmental technology and environmental
tax on promoting RNE consumption and reducing the ecological foot
GDP ∕ = Rne 5.76921 8.45114 0.0000 GDP ↔ Rne
Rne ∕= GDP 4.55571 5.50713 4.E− 08 print. The findings demonstrate that while environmental technology
envtx ∕
= Rne 3.66681 3.35061 0.0008 Rne ↔ envtx positively impacts RNE consumption across all quantiles, it is not sta
Rne ∕= envtx 3.40687 2.71998 0.0065 tistically significant. This implies that most B&R economies may not
entech ∕
= Rne 3.11856 2.02052 0.0433 entech → Rne have reached a level of development and preparedness to adopt envi
Rne ∕= entech 2.44442 0.38502 0.7002
fdi ∕
= Rne 3.84418 3.78092 0.0002 fdi → Rne
ronmental technology to enhance RNE consumption effectively.
Rne ∕= fdi 2.56395 0.67503 0.4997 Similarly, the environmental tax policy impact on ecological foot
GQ ∕= Rne 4.33946 4.98251 6.E− 07 GQ ↔ Rne print is negative but insignificant throughout the quantiles. The impact
ne ∕
= GQ 4.15443 4.53361 6.E− 06 of foreign direct investment is not beneficial to raising RNE consumption
DP ∕= Ecf 6.75473 2.24715 0.0246 GDP → Ecf
and decreasing the ecological footprint.
Ecf ∕
= GDP 6.00589 1.28817 0.1977
envtx ∕
= Ecf 7.00656 2.56965 0.0102 envtx → Ecf According to the last hypothesis, the study found that the govern
Ecf ∕
= envtx 4.79855 − 0.25798 0.7964 ment quality of B&R economies positively brings clean investment,
entech ∕
= Ecf 6.38787 1.77735 0.0755 entech → Ecf improves RNE consumption, and mitigates ecological turmoil. The re
Ecf ∕
= entech 5.60821 0.77888 0.4360 sults also revealed that government quality is important for mobilizing
fdi ∕
= Ecf 6.32757 1.70012 0.0891 fdi → Ecf
environmental technology and tax policy. We run the causality analysis
Ecf ∕
= fdi 5.18095 0.23173 0.8167
GQ ∕= Ecf 3.26093 7.92614 2.E− 15 GQ → Ecf to endorse the relationships between the concerned analysis indicators.
Ecf ∕
= GQ 1.24241 0.46139 0.6445 Regardless of one-way or two-way directions, the study found a causal
GQ ∕= envtx 4.53513 12.6383 0.0000 GQ → envtx connection between all the examined factors. The robustness analysis
envtx ∕
= GQ 0.92005 − 0.73073 0.4649
found that the spillover of foreign direct inflow positively boosts RNE
GQ ∕= entech 5.64683 3.72671 0.0002 GQ → entech
entech ∕
= GQ 4.39994 1.51541 0.1297 consumption at most quantiles. Environmental tax and environmental
GQ ∕= fdi 4.63303 1.92878 0.0538 GQ → fdi can be beneficial for increasing RNE consumption and lowering the
fdi ∕
= GQ 3.67704 0.23336 0.8155 ecological footprint. Also, government quality significantly matters in
Note: ↔ two-way causality. → One-way causality. promoting RNE consumption and environmental quality.
The results of this study suggest potential policy recommendations
that could enhance the use of renewable sources and address environ
enhancing RNE consumption and ecological footprint mitigation.
mental imbalances in B&R economies. Governments must prioritize
Additionally, the study investigated whether FDI in B&R economies is a
realigning their policy objectives and implement comprehensive re
viable avenue for transferring clean technologies. Along, we capture the
forms to leverage environmental taxation and new technologies effec
role of B&R country’s government qualities in mobilizing environmental
tively. The participating governments of the B&R initiative have a
technology, environmental taxations, and FDI to promote RNE con
distinct chance to drive significant economic growth while concurrently
sumption and reduce the ecological footprint. Correspondingly, the
enabling the shift towards renewable energy sources. This strategic
study proposed a hypothesis to address the study’s objectives. The study
realignment can potentially mitigate the "environmental haven effect
applied the augmented Panel Method of Moment’s Quantile Regression
successfully." By aggressively advocating for and supporting renewable
to investigate the concerned research model of the B&R panel.
energy efforts, these nations have the potential to achieve a synergistic
The primary and secondary hypotheses of the study determine
combination of economic growth and environmental sustainability. It is
whether the economic growth of B&R economies contributes positively
important to acknowledge that foreign direct investment plays a crucial
to increased RNE consumption and reduced ecological footprint. The
role in the economies of these nations. However, it is equally imperative
findings indicate a strong and significant positive relationship between
to implement rigorous monitoring and regulation of pollution-causing
the economic growth of B&R economies and the rise in RNE consump
operations carried out by foreign investors. Implementing levies on
tion. Moreover, the results reveal that economic growth has a signifi
sectors that contribute to pollution can be a deterrent, prompting foreign
cantly positive impact on the ecological footprint across all quantiles.
direct investment to favor cleaner technology processes. Additionally,
Despite the increasing trend in RNE consumption in B&R economies, it is
governments can provide a range of incentives to stimulate the wide
evident that ecological footprints continue to grow concurrently. This
spread use of renewable energy sources.
observation suggests that fossil fuel consumption remains a significant
16
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Energy Strategy Reviews 50 (2023) 101258

Contents lists available at ScienceDirect

Energy Strategy Reviews

The role of governance quality on mobilizing environmental technology

economies worldwide, which, unfortunately, has led to a simultaneous

potential consequences of surpassing this temperature threshold are

Fig. 3. Summary of hypothesis.

Fig. 5. Environmental technology and government.

Mean 1.817520 11.99748 7.908211 14508.71 19.03399 3.837207 0.492850

Fig. 7. Box plots and descipritive distribution overlays of the variables.

Delta 19.954 0.000

statistics − 2.623 − 5.134 − 14.261 − 4.649

statistics − 2.585 − 0.176 − 6.387 − 0.157

growth is constrained in scope and comprehensive analysis. For instance

Ref. [64], emphasized the significant interconnection between economic

and climate change challenges. Consequently, evaluating the in­

offer a valuable contribution to the field. The following hypotheses are

Hypothesis-l (Hl). Does the economic growth of Belt and Road

economies contribute to enhancing renewable energy consumption?

Governments are urged to make environmental policies that limit the

the government’s most effective policy to lower the footprint [32,66]. As

popularity as a protector of the environment during the Kyoto Protocol

in the late 1990s [68]. conducted pioneering research by employing

reducing CO2 emissions in Japan. Their study demonstrated a significant

Similarly [69], highlighted that environmental taxes help to reduce

carbon emissions by contributing to higher fossil fuel prices, leading to

Ecfit = f (GDPit , fdiit , envtxit , entechit , GQit ) (2)

are an important detriment to RNE consumption and the ECF. Therefore,

cycle. It allows competing technology to be copyrighted and permits

third parties to extend revenue opportunities through research and

development. It’s a method or a technical solution to a problem that

advancement is insufficient to approach the green economy or protect

environmental protocols. Briefly, the government is essential in mobi­

The government can play a direct and indirect role in mobilizing

technical development in the environmental sector. Similarly, it can

incentivize investors to invest in less-profit projects to spread RNE

consumption. The government can attract foreigners to RNE sectors as

terms of government quality with foreign direct investment, environ­

direct (mediation) effect on RNE and ecological footprint.

4.1. Data, sources, and descriptive statistics

The Ecf (Ecological Footprint) data is measured in units of global

is estimated in terms of GDP per capita, with the values expressed in

constant 2015 US dollars. fdi is measured as foreign direct investment,

Environmental tax Total, % of GDP. entech & envtx indicators are

presented by Kaufmann et al. (2010). The index utilized in this study

areas such as public service quality, civil service independence, policy

formulation and implementation effectiveness, and the reliability of

policy commitments. The estimated values of this index fall within a

Renewable energy, FDI, and government quality model.

The second important test is the slope heterogeneity of the B&R

5.2. Panel long-run assessments

consumption across all quantiles. The GDP impact is an essential indi­

progression in the development process [95]. Its significant impact on

reserves, and environmental concerns. Our results are consistent with

[109,110], showing the positive influence of growth on RNE

pertaining that RNE consumption rises with technological development,

significantly. The impact of foreign direct investment is negative to in­

foreign direct investment is not directed to RNE sources.

comparative advantages [79]. Developing countries deliberately follow

the less stringent policy to get comparative advantages in production

An important policy tool for governments is the implementation of

environmental taxes. The study reveals a positive impact of environ­

significant and leads to a notable increase in RNE consumption. The

and climate change challenges. Consequently, evaluating the in

environmental protocols. Briefly, the government is essential in mobi

terms of government quality with foreign direct investment, environ

consumption across all quantiles. The GDP impact is an essential indi

significantly. The impact of foreign direct investment is negative to in

environmental taxes. The study reveals a positive impact of environ

that they are ineffective in changing behavior and reducing environ

higher quantile in the B&R economy’s ecological footprint. The incre

panel-augmented Granger causality approach. DH causality is appro