Environmental implications of technology-driven energy deficit and urbanization: Insights from the environmental Kuznets and pollution hypothesis

The Belt and Road Initiative (BRI) intends to promote economic development in many developing countries and improve regional connectivity. Concerns about the BRI economies' environmental effects, particularly concerning carbon emissions (CO2E), have arisen due to their rapid economic progress. The current study examines the relationship between technology-driven energy deficits, urbanization, and CO2E in the 48 BRI economies. Using the Sys-GMM dynamic technique with balanced panel data from 2001 to 2020 reveals that technology-driven energy deficits positively impact CO2E, while urbanization negatively impacts CO2E. Renewable energy sources have a mitigating effect on CO2E. This current research supports the EKC of growth and the Pollution Halo Hypothesis of FDI but not the Pollution Haven Hypothesis. The findings suggest that strategies to reduce carbon emissions should prioritize urban development and adopt technology-driven energy sources.