Abstract
Preserving the environment and promoting sustainable development are essential objectives for a state aimed at improving the standard of living for present and future generations. The depletion of natural resources and environmental degradation are serious concerns for policymakers worldwide. However, to fulfill its role effectively, a state must have strong institutional capacity. Studies have shown that inadequate governance and weak institutional quality are associated with environmental degradation, lower economic growth, unfavorable development outcomes, and increased inequality. Economic and political reforms are necessary to overcome these issues, while the concept of institutional reforms to save the environment is novel and hardly discussed in the earlier literature, especially in the context of BRI countries. So, this study explores the impact of economic and political reforms on the environment by applying a difference-in-differences approach to the data of 45 BRI economies from 2000 to 2022. The empirical findings reveal a negative relationship between economic and political reforms on ecological footprints, emphasizing the need for institutional reform to preserve the environment in the BRI region. Institutional reforms have a significant contribution to environmental sustainability by fostering better governance, political stability, and an environment conducive to reforms-driven decision-making. These reforms can help address the environmental challenges associated with large-scale infrastructure and economic development projects like the BRI, ultimately contributing to a more sustainable future.