This paper offers a unique perspective in the field of environmental economics and research by linking CO 2 emissions (CO 2 e) and monetary policies. Through a newlydeveloped predictive model, the study estimated the impact of monetary policies on CO 2 e along with control variables, including income, remittances, urbanization, fossil fuels, and human capital in selected Asian economies for the period 1990-2014. Data were analyzed using the Pedroni and Kao co-integration tests, panel fully-modified (PFM-LS), and panel dynamic least squares (PD-LS) techniques for data analysis. Some of the main findings are as follows. First, the results showed a significant long-term positive relationship between expansionary monetary policy and CO 2 e. Second, the contractionary monetary policy serves an effective measure to mitigate CO 2 e. Third, improvements in human capital have a positive impact on reducing CO 2 e. Fourth, remittances and fossil fuels are also prime determinants of CO 2 e. Based on the present findings, the paper proposes important implications and a predictive tool for policymakers to design effective policies and strategies for reducing CO 2 e.

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