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The Belt and Road investment involves a large number of renewable energy projects, but whether the energy efficiency is linked to the Belt and Road Initiative (BRI) cooperation has yet to be established in the literature. This research attempts to close this gap by looking at how the BRI affects the energy efficiency of participating nations after the fact through a counterfactual analysis. Based on the Difference-in-Difference-in-Difference (DDD) and quantile DID methods for the panel dataset covering 178 nations and areas for the period of 2002 to 2018, we explored the impacts of BRI on energy efficiency vary by different energy efficiency quantiles, resource endowments, and income levels. First, the positive effects of BRI are significant in medium-and high-energy efficiency quantiles but are not significant in low-energy efficiency quantiles for up to 30%. Second, the BRI tends to increase more energy efficiencies in resource-rich BRI countries than those in resource-poor BRI countries. Third, the BRI tends to increase more energy efficiencies in low-income BRI countries than those in high-income BRI countries. The findings can assist BRI countries in improving energy efficiency and sustainable development capacity under the initiative, thus resolving the increasing anxieties in climate change and environmental pollution in this area.

Heterogeneous Effects of the Belt and Road Initiative on Energy Efficiency in Participating Countries