Since China's announcement of the Belt and Road Initiative (BRI) in 2015, much focus has been drawn on the environmental impacts of China's energy investments in the countries along the BRI. The economic and social impacts of these investments, which are also important for the wellbeing for local people, left largely uninvestigated. In this paper, we used China's renewable energy investments in Pakistan as a case study to investigate the contributions of these investments on local economy and employment. Through IO table analysis, we found that the 28 renewable power plant projects invested by China till now potentially provided 8905 jobs and generated around USD 39.8 million production values in related sectors in Pakistan, including USD 30.7 million from wind power plants development and 9.1 million from solar. When Chinese companies act as engineers and constructors, the increase of production value in relevant sectors in Pakistan (USD 6.05 million per 100 MW) are higher than wind power plant projects with other magnitude of engagement (3.82 million as a fully sponsor, 4.19 million as only finance supporter and 2.29 as equipment provider). Wind power plants will create more jobs and increase more production values than solar power plants. This study identifies the economic and social benefits of BRI renewable energy investments from China and the driving mechanism, thus providing basis for promoting renewable energy investments in countries like Pakistan so that they can gain new drive for social and economic growth from the global trend of low carbon transition.
Keywords: Belt and road initiative; Economic and social impact; IO model; Power sector; Renewable energy.
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