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Trade Cooperation, Environmental Protection, and Sustainability: The Belt and Road Initiative Perspective
Yu-Fei Zhang1,2,3,4, Hao Wang1,2,3,4, Li-Jing Liu1,2,3,4
1Center For Energy and Environmental Policy Research Beijing Institute of Technology Beijing China.
Global Challenges (Hoboken, NJ)
|July 17, 2026
Summary
Trade cooperation boosts economic growth and welfare, but can harm the environment. A tailored carbon reduction policy can balance economic development and environmental protection in the Belt and Road region.
Area of Science:
- Environmental economics
- International trade
- Sustainable development
Background:
- The Belt and Road Initiative (BRI) connects regions responsible for over half the world's primary energy.
- Developing economies in the B&R region face challenges balancing economic growth with environmental protection.
Purpose of the Study:
- To assess the economic and environmental impacts of trade cooperation in the B&R region.
- To evaluate the effectiveness of carbon reduction policies in mitigating negative environmental consequences.
Main Methods:
- Utilized the global multi-regional dynamic computable general equilibrium model (C³IAM3.0/GEEPA).
- Simulated trade liberalization and foreign direct investment scenarios within the B&R region.
Main Results:
- Trade liberalization leads to increased trade and improved resident welfare.
- Foreign direct investment promotes mid-to-long-term economic growth but intensifies environmental degradation.
- A customized carbon reduction policy effectively balances economic and environmental objectives.
Conclusions:
- Trade cooperation presents both opportunities and challenges for socioeconomic development and environmental sustainability.
- Policy interventions, specifically targeted carbon reduction strategies, are crucial for achieving sustainable development alongside economic growth.
- Governments should integrate economic and environmental policies rather than viewing them as conflicting goals.
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