The dynamic linkage between remittances, export diversification, education, renewable energy consumption, economic growth, and CO₂ emissions in top remittance‐receiving countries

Abstract

In recent years, the literature on financial development, public finance, and other areas has substantially increased; however, remittances are among the most neglected sources with significantly larger resource inflow that may serve the purpose of reducing environmental degradation. The literature on export diversification and education is also limited, with conflicting findings. With this in mind, the current research examined the relationship among remittances, export diversification, education, and CO2 emissions controlling for renewable energy and economic growth in a panel of 22 top remittance‐receiving countries over the period 1986–2017. The study employed second‐generation unit root techniques in econometric methodology, Westerlund and Edgerton cointegration approach with structural breaks, Cup‐FM and CUP‐BC long‐run estimation techniques, and generalized quantile regression method. The findings indicate that remittances help in reducing environmental degradation as they have a negative effect on emissions. Likewise, export diversification reduces CO2 emissions, and renewable energy also contributes to decreasing CO2 emissions. In contrast, economic growth is conducive to environmental degradation. The study also finds a robust estimate of education as a stimulant of environmental degradation. Based on these novel findings, several policy suggestions are discussed.

Diaspora income, financial development and ecological footprint in Africa

“…(2019) argue that remittances have an asymmetric effect on CO2 emissions in China However, some literature argues that remittances have a positive impact on environmental quality. For instance, Zafar et al (2021) used the Westerlund and Edgerton cointegration approach on a panel of 22 countries concluded that remittances reduce CO2 emission and therefore reduces environmental degradation. Other studies argue that remittances do not have any significant impact on the environmental outcome.…”

“…A few attempts have been made to empirically examine the impact of diaspora income on the environment (Ahmad et al 2019;Elbatanony et al 2021;Kibria 2021;Usman and Jahanger 2021;Yang et al 2020;Yang et al 2021;Zafar et al 2021). While the research outcomes predominantly suggest that diaspora income contributes to environmental degradation, it is noteworthy that Zafar et al (2021) report that diaspora income reduces environmental degradation, while find no relationship between the two variables for China and India. This suggests that the impact of diaspora income on the environment may vary across countries or regions.…”

Economic Freedom, Education and CO2 Emissions: A Causality Analysis for EU Member States

“…The empirical studies on the nexus between education and CO 2 emissions have stayed inconclusive in line with the theoretical considerations. Duarte et al [41], Uddin [29], Wang et al [42], Li and Ullah [43] revealed a decreasing effect of education on CO 2 emissions, but Li and Zhou [44] and Zafar et al [45] discovered an increasing effect of education on CO 2 emissions. Furthermore, Khan [46] and Cui et al [47] reached findings incompatible with the EKC hypothesis.…”

“…Li and Zhou [44] explored the relationship among demographic characteristics, higher education, and CO 2 emissions in China via fully modified ordinary least squares and disclosed a positive effect of higher education on CO 2 emissions in East China. Zafar et al [45] also explored the factors underlying CO 2 emissions in 22 top remittance-receiving countries for 1986-2017 via Westerlund and Edgerton cointegration test and discovered a positive influence of education on CO 2 emissions.…”

“…Therefore, the findings of panel-level and country causality analyses mainly support the theoretical expectations. Furthermore, the related empirical literature has generally found a significant influence of education on the environment [29,[41][42][43][44][45][46][47]. Consequently, education is one of the crucial instruments to improve environmental quality.…”