| Summary/Abstract |
From an analysis of 729 completed energy sector outward foreign direct investment (OFDI) deals by Chinese firms from 2005 to 2016, this paper evaluated the Chinese OFDI greening tendencies and the links to host country energy structures and energy efficiency, for which PSM-DID analysis was used to control the influence of endogeneity resulting from missing variables. It was found that Chinese firms tended to invest in green projects when the host countries had better political environments, natural resource endowments and higher energy efficiencies, but lower carbon dioxide intensities, less developed energy structures, technologies and infrastructures. It was also found that the Belt and Road Initiative (BRI) had a strong policy effect on the greening of Chinese OFDI in the related countries and areas and especially in developing countries. Because the Chinese firms chose to invest in clean energy projects as a result of the new BRI policy framework, this research shed light on the Chinese OFDI policy responses.
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