Abstract:
This paper explores the relationship between the financial, economic, and governance
factors of energy intensity in Belt and Road Initiative (BRI) countries. Focusing on how to achieve
energy efficiency and development, it relies on previous research and econometric data to explore the
financial and economic factors, environmental trends, and governance indicators that predetermine
energy intensity in BRI countries. The study focuses on three crucial dependent variables using an
integrated fixed effects regression analysis: 1) energy use per gross domestic product (EU/GDP), 2)
industrial value added per industrial manufacturing output (IVA/IMO), and 3) energy use per
purchasing power parity (EU/PPP). Our findings suggest that the financial factor index (FFI) and
economic factor index (EFI) explain energy intensity measures significantly through EU/GDP and
EU/PPP, respectively. Partially moderating energy outcomes such as institutional quality (IQ) and
governance effectiveness (GE) correspond to the quality of governance. Other interaction terms
reveal a pattern between IQ and FFI, particularly the moderating effect of governance on economic
factors in EU/GDP (FFI*IQ). This paper highlights the consequences of the sustainable
development of energy in BRI countries, implying that energy intensity must be improved
efficiently. This is with reference to the interrelationships among the financial and economic systems
and governance. Adding another layer to the concept of efficiency, this paper provides a better
understanding of sustainable development in the BRI region.
