On the remittances-environment led hypothesis: Empirical evidence from BRICS economies

Khan, Zia Ullah; Ahmad, Manzoor; Khan, Anwar

doi:10.1007/s11356-020-07999-8

Research Article
Published: 02 March 2020

On the remittances-environment led hypothesis: Empirical evidence from BRICS economies

Environmental Science and Pollution Research volume 27, pages 16460–16471 (2020)Cite this article

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Abstract

In this paper, we investigated the association between CO₂ emissions, remittances, income, energy use, and foreign direct investment (FDI) through panel cointegration analysis, common correlated effect mean group (CCEMG), fully modified least squares (FM-LS) estimates, and panel causality test for the Brazil, Russia, India, China, and South Africa (BRICS) economies over 1986–2016. The empirical outcomes of CCEMG and FM-LS clarified that remittance inflows into BRICS region are contributing to environmental degradation. Similarly, results in the case of Brazil, Russia, and China supported the remittances-led emission hypothesis. On the other hand, different results have been reached in India, thus the remittances; inflows have dictated that they are helping to combat CO₂ emission. Furthermore, FDI has a positive and significant sign for BRICS economies. This relationship narrated that the FDI inflows to this region increase the CO₂ emission, hence obeying the pollution haven hypothesis. Finally, energy use also supports the energy-led emanation phenomenon in BRICS panel and alongside the countries. The panel causality test confirms the bidirectional linkage between remittances and CO₂ emissions.

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School of Business Administration, Department of Industrial Economics, Southwestern University of Finance and Economics, Chengdu, China
Zia Ullah Khan
School of Economics, Department of Industrial Economics, Nanjing University, Nanjing, China
Manzoor Ahmad
West Center for Economic Research, Southwestern University of Finance and Economics, Chengdu, China
Anwar Khan

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Zia Ullah Khan
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Manzoor Ahmad
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Khan, Z.U., Ahmad, M. & Khan, A. On the remittances-environment led hypothesis: Empirical evidence from BRICS economies. Environ Sci Pollut Res 27, 16460–16471 (2020). https://doi.org/10.1007/s11356-020-07999-8

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Received: 09 October 2019
Accepted: 05 February 2020
Published: 02 March 2020
Issue Date: May 2020
DOI: https://doi.org/10.1007/s11356-020-07999-8

Keywords

CO₂ emission
FDI inflows
Remittances
Energy use
BRICS