Gallagher Publishes Article on Chinese Energy Finance in Developing Countries

Kevin Gallagher, Professor of Global Development Policy at Boston University’s Frederick S. Pardee School of Global Studies and Director of BU’s Global Development Policy Center (GDP Center), co-authored a research article in April’s edition of Energy Research & Social Science on the determinants of Chinese overseas energy finance in developing countries.

Gallagher published the article, titled “Pushing out or pulling in? The determinants of Chinese energy finance in developing countries,” Zhongshu Li, Xu Chen, and Denise L. Mauzerall of Princeton University as well as Jiahai Yuan of North China Electric Power University. While China’s Belt and Road Initiative (BRI) has a great deal of investment in developing countries’ energy sectors, the BRI’s carbon footprint is significantly carbon-intensive. In order to understand and steer Chinese finance more towards renewable energy technologies in the power sectors of developing countries, Gallagher and his co-authors explore the domestic incentives for Chinese energy investment abroad as well as those in recipient countries that facilitate that investment.

An excerpt from the abstract:

China is now one of the world’s largest financiers and investors in the global electric power sector. While a number of important qualitative analyses have examined the determinants of Chinese energy finance, this paper deploys new data to perform the first econometric analysis to examine the determinants of Chinese overseas financing for electric power plants. Drawing on that earlier work, we examine a number of ‘push factors’ –incentives in China that facilitate investment abroad—and ‘pull factors’ –incentives in recipient countries that facilitate Chinese investment into their country.

The full article can be read on Science Direct’s website.

Kevin Gallagher is a professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he directs the Global Development Policy Center. He is the author or co-author of numerous books, including most recently, The Case for a New Bretton Woods (Wiley, 2022). Read more about Professor Gallagher on his Pardee School faculty profile.