Volume 56

GHG Emission, National Characteristics and BRI Influence-An Empirical Analysis of China’s Collaborators in the Oil and Gas Industry Ding Li, Ding Jianfu, Huilin Liu

Abstract

With the global de-carbon goals, criticisms regarding the associated “carbon transfer” within The Belt and Road Initiative (BRI) oil and gas cooperation have emerged. These critiques highlight the potential for the BRI to facilitate the long-term transfer of carbon-intensive industries, such as the upstream and midstream sectors of oil and natural gas, from China to signatory countries. This paper aims to investigate and compare the factors influencing the carbon emissions of host countries. Firstly, it examines the effect of external BRI policy on emissions in signatories. Secondly, it explores the impact of host country’s internal sociocultural characteristics that may shape its inclination to emission reduction. Thirdly, the study conducts heterogeneity analysis based on the first two aspects. For example, it examines whether gas cooperation is more effective in emission reduction than oil cooperation. Additionally, it assesses whether downstream trade contributes more to emission reduction compared to midstream & upstream business. Moreover, the study investigates whether different cooperation models in upstream business exert varying impacts on carbon emissions. The findings indicate that the internal sociocultural characteristics of the host country exert a considerably greater influence on GHG emission in the energy sector compared to China’s BRI. Moreover, variations in the effects do varies between oil and gas; downstream and up-midstream business; as well as various contract modes employed in upstream activities.

Keywords GHG Emission, Oil&Gas, BRI; Social Culture, Industry Chain, Contract Mode