Abstract
The present study aims to investigate the impact of remittances on CO2 emission by incorporating financial development, economic growth, industry value added, and agriculture value added in it. This research covers the 37 years of panel data of five countries, i.e., India, the Philippines, Egypt, Pakistan, and Bangladesh, from 1980 to 2016. The data were collected from the World Bank database. The panel cointegration technique and panel autoregressive distributive lag (ARDL) model have been employed to check long-run relationships. The estimated result of the panel cointegration approach confirms the existence of a long-run relationship among remittances received, financial development, economic growth, industry value added, agriculture value added, and CO2 emission. The findings of the study indicate that an increase in received remittances, economic growth, and value-added agriculture help in mitigating carbon emissions from the selected panel countries. However, improving the financial system and adding more industries result in the high emission of CO2. On the contrary, the short-run ARDL estimation shows that CO2 emission increases at a significant level with the increase of remittances inflow and agriculture value added, while in the case of financial development, economic growth, and industry value added, this increasing effect in CO2 is at an insignificant level. Moreover, dynamic ordinary least square (DOLS) is used in this study for robust analysis and found the same long run result like ARDL. Additionally, this study also provides some important recommendations to economic policymakers to reduce CO2 emission in the selected remittance-receiving countries.
Similar content being viewed by others
References
Abid M (2016) Impact of economic, financial, and institutional factors on CO2 emissions: evidence from sub-Saharan Africa economies. Util Policy 41:85–94
Abokyi E, Appiah-Konadu P, Sikayena I, Oteng-Abayie EF (2018) Consumption of electricity and industrial growth in the case of Ghana. Journal of Energy:2018
Ahmad F, Draz MU, Su L, Ozturk I, Rauf A, Ali S (2019a) Impact of FDI inflows on poverty reduction in the ASEAN and SAARC economies. Sustainability 11:2565
Ahmad M, Ul Haq Z, Khan Z, Khattak SI, Rahman ZU, Khan S (2019b) Does the inflow of remittances cause environmental degradation? Empirical evidence from China Economic research-Ekonomska istraživanja 32:2099–2121
Akram R, Majeed MT, Fareed Z, Khalid F, Ye C (2020) Asymmetric effects of energy efficiency and renewable energy on carbon emissions of BRICS economies: evidence from nonlinear panel autoregressive distributed lag model. Environ Sci Pollut Res:1–15
Alshubiri F, Elheddad M (2019) Foreign finance, economic growth and CO2 emissions Nexus in OECD countries International Journal of Climate Change Strategies and Management
Askarov Z, Doucouliagos H (2020) A meta-analysis of the effects of remittances on household education expenditure. World Dev 129:104860
Attiaoui I, Toumi H, Ammouri B, Gargouri I (2017) Causality links among renewable energy consumption, CO 2 emissions, and economic growth in Africa: evidence from a panel ARDL-PMG approach. Environ Sci Pollut Res 24:13036–13048
Azizi S (2020) Impacts of remittances on financial development Journal of Economic Studies
Bank W (2016) Migration and remittances Factbook
Bank W (2019) World development indicators: database
Başarir Ç, Çakir YN (2015) Causal interactions between CO2 emissions, financial development, energy and tourism Asian. Economic and Financial Review 5:1227–1238
Bhattacharya M, Inekwe J, Paramati SR (2018) Remittances and financial development: empirical evidence from heterogeneous panel of countries. Appl Econ 50:4099–4112
Bonilla SH, Silva HR, Terra da Silva M, Franco Gonçalves R, Sacomano JB (2018) Industry 4.0 and sustainability implications: a scenario-based analysis of the impacts and challenges. Sustainability 10:3740
Breusch TS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47:239–253
Chandio AA, Akram W, Ahmad F, Ahmad M (2020) Dynamic relationship among agriculture-energy-forestry and carbon dioxide (CO 2) emissions: empirical evidence from China. Environ Sci Pollut Res 27:34078–34089
Dewan AM, Yamaguchi Y (2009) Land use and land cover change in Greater Dhaka. Bangladesh: using remote sensing to promote sustainable urbanization Applied geography 29:390–401
Dickey DA, Fuller WA (1979) Distribution of the estimators for autoregressive time series with a unit root. J Am Stat Assoc 74:427–431
Dogan N (2016) Agriculture and Environmental Kuznets Curves in the case of Turkey: evidence from the ARDL and bounds test. Agric Econ 62:566–574
Dogan E, Aslan A (2017) Exploring the relationship among CO2 emissions, real GDP, energy consumption and tourism in the EU and candidate countries: evidence from panel models robust to heterogeneity and cross-sectional dependence. Renew Sust Energ Rev 77:239–245
Environment U, Scrivener KL, John VM, Gartner EM (2018) Eco-efficient cements: potential economically viable solutions for a low-CO2 cement-based materials industry. Cem Concr Res 114:2–26
Farhani S, Ozturk I (2015) Causal relationship between CO 2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia. Environ Sci Pollut Res 22:15663–15676
Gonzalez-Velosa C (2011) The effects of emigration and remittances on agriculture: evidence from the Philippines. Job market paper:1–55
Granger CW (1969) Investigating causal relations by econometric models and cross-spectral methods. Econometrica: journal of the Econometric Society:424–438
Halicioglu F (2009) An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37:1156–1164
Hashmi SH, Fan H, Fareed Z, Shahzad F (2021) Asymmetric nexus between urban agglomerations and environmental pollution in top ten urban agglomerated countries using quantile methods. Environ Sci Pollut Res 28:13404–13424
Hatzigeorgiou E, Polatidis H, Haralambopoulos D (2011) CO2 emissions, GDP and energy intensity: a multivariate cointegration and causality analysis for Greece, 1977–2007, Appl Energy 88:1377-1385
Holly R (2015) The complicated relationship between agriculture and climate change.
Hou J, Teo TS, Zhou F, Lim MK, Chen H (2018) Does industrial green transformation successfully facilitate a decrease in carbon intensity in China? An environmental regulation perspective Journal of cleaner production 184:1060–1071
Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econ 115:53–74
Javed ZH (2018) Agricultural productivity and CO2 emission in Pakistan: an econometric analysis. International Journal of Renewable Energy Research (IJRER) 8:1535–1543
Jiang C, Ma X (2019) The impact of financial development on carbon emissions: a global perspective Sustainability 11:5241
Kakhkharov J (2019) Migrant remittances as a source of financing for entrepreneurship. Int Migr:57, 37–55
Kao C, Chiang M-H (2001) On the estimation and inference of a cointegrated regression in panel data. In: Nonstationary panels, panel cointegration, and dynamic panels. Emerald Group Publishing Limited,
Karnosky DF (2003) Impacts of elevated atmospheric CO2 on forest trees and forest ecosystems: knowledge gaps. Environ Int 29:161–169
Kawase R, Matsuoka Y, Fujino J (2006) Decomposition analysis of CO2 emission in long-term climate stabilization scenarios. Energy Policy 34:2113–2122
Khan A, Chenggang Y, Bano S, Hussain J (2020a) The empirical relationship between environmental degradation, economic growth, and social well-being in Belt and Road Initiative countries. Environ Sci Pollut Res 27:30800–30814
Khan A, Chenggang Y, Xue Yi W, Hussain J, Sicen L, Bano S (2020b) Examining the pollution haven, and environmental Kuznets hypothesis for ecological footprints: an econometric analysis of China. India, and Pakistan Journal of the Asia Pacific Economy:1–21
Khatri BB (2017) Utilization of remittance at household level: a case of Khanigaun Village of Resunga Municipality. Gulmi District Nepalese Journal of Development and Rural Studies 14:12–20
Kibria U, Arshadm M, Kamran M, Mehmood Y, Imdad S, Sajid M (2014) Exploring the impact of macro economic variables on GDP growth in Pakistan. Research Journal of Management Sciences 3:1–6
Kumar RR, Stauvermann PJ, Kumar NN, SJH S (2018) Revisiting the threshold effect of remittances on total factor productivity growth in South Asia: a study of Bangladesh and India. Appl Econ 50:2860–2877
Levin A, Lin C-F, Chu C-SJ (2002) Unit root tests in panel data: asymptotic and finite-sample properties. J Econ 108:1–24
Li S, Zhang J, Ma Y (2015) Financial development, environmental quality and economic growth. Sustainability 7:9395–9416
Liu X, Bae J (2018) Urbanization and industrialization impact of CO2 emissions in China. J Clean Prod 172:178–186
Liu L, Wang K, Wang S, Zhang R, Tang X (2018) Assessing energy consumption, CO2 and pollutant emissions and health benefits from China’s transport sector through 2050. Energy Policy 116:382–396
Liu Y, Amin A, Rasool SF, Zaman QU (2020a) The role of agriculture and foreign remittances in mitigating rural poverty: empirical evidence from Pakistan. Risk management and healthcare policy 13:13
Liu Y, Amin A, Rasool SF, Zaman QU (2020b) The role of agriculture and foreign remittances in mitigating rural poverty: empirical evidence from Pakistan. Risk Management and Healthcare Policy 13:13–26
Maddala GS, Wu S (1999) A comparative study of unit root tests with panel data and a new simple test. Oxf Bull Econ Stat 61:631–652
Masuduzzaman M (2014) Workers’ remittance inflow, financial development and economic growth: A study on Bangladesh. Int J Finance Econ 6(8):247–267
Meyer D, Shera A (2017) The impact of remittances on economic growth: an econometric model. EconomiA 18:147–155
Mugableh MI (2015) Economic growth, CO2 emissions, and financial development in Jordan: equilibrium and dynamic causality analysis. Int J Econ Financ 7:98–105
Murshed M (2020) An empirical analysis of the non-linear impacts of ICT-trade openness on renewable energy transition, energy efficiency, clean cooking fuel access and environmental sustainability in South Asia. Environ Sci Pollut Res:1–28
Parton WJ, Del Grosso SJ, Marx E, Swan AL (2011) Agriculture’s role in cutting greenhouse gas emissions. Issues in Science and Technology 27:29–32
Paul S, Bhattacharya RN (2004) CO2 emission from energy use in India: a decomposition analysis. Energy Policy 32:585–593
Pedroni P (2004) Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econometric theory:597–625
Pesaran MH (2004) General diagnostic tests for cross-sectional dependence in panels. Empir Econ:1–38
Pesaran MH, Shin Y (1995) An autoregressive distributed lag modelling approach to cointegration analysis
Qureshi JA (2016) The Pakistan remittance initiative and remittance flows to Pakistan vol 35. Intl Food Policy Res Inst,
Rapoport H, Docquier F (2006) The economics of migrants’ remittances. Handbook of the economics of giving, altruism and reciprocity 2:1135–1198
Rehman A, Ozturk I, Zhang D (2019) The causal connection between CO2 emissions and agricultural productivity in Pakistan: empirical evidence from an autoregressive distributed lag bounds testing approach. Appl Sci 9:1692
Shahbaz M, Hye QMA, Tiwari AK, Leitão NC (2013) Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia. Renew Sust Energ Rev 25:109–121
Shahbaz M, Uddin GS, Rehman IU, Imran K (2014) Industrialization, electricity consumption and CO2 emissions in Bangladesh. Renew Sust Energ Rev 31:575–586
Shahzad U, Fareed Z, Shahzad F, Shahzad K (2021) Investigating the nexus between economic complexity, energy consumption and ecological footprint for the United States: new insights from quantile methods. J Clean Prod 279:123806
Sharma K, Bhattarai B, Ahmed S (2019) Aid, growth, remittances and carbon emissions in Nepal. Energy J:40
Stern NH et al. (2006) Stern Review: the economics of climate change vol 30. Cambridge University Press Cambridge,
Tsadiras A, Pempetzoglou M, Viktoratos I (2020) Making predictions of global warming impacts using a semantic web tool that simulates fuzzy cognitive maps. Comput Econ:1–31
Tsou Y-L, Edelman DJ (2013) Planning for economic growth with reduced CO2 emissions in Provincial China: the case of Jiangxi. Journal of Urban Management 2:45–70
Ullah F, Rauf A (2013) Impacts of macroeconomic variables on economic growth: a panel data analysis of selected Asian countries. International Journal of Information Business and Management 5:4
Ullah S, Ozturk I, Usman A, Majeed MT, Akhtar P (2020) On the asymmetric effects of premature deindustrialization on CO2 emissions: evidence from Pakistan. Environ Sci Pollut Res:1–11
Waheed R, Chang D, Sarwar S, Chen W (2018) Forest, agriculture, renewable energy, and CO2 emission. J Clean Prod 172:4231–4238
Wang M, Arshed N, Munir M, Rasool SF, Lin W (2021) Investigation of the STIRPAT model of environmental quality: a case of nonlinear quantile panel data analysis Environment, Development and Sustainability
Yang B, Jahanger A, Khan MA (2020) Does the inflow of remittances and energy consumption increase CO 2 emissions in the era of globalization? A global perspective Air Quality, Atmosphere & Health 13:1313–1328
Yenipazarli A (2016) Managing new and remanufactured products to mitigate environmental damage under emissions regulation European. Journal of Operational Research 249:117–130
Zaman R (2012) CO2 emissions, trade openness and GDP per capita: Bangladesh perspective
Zaman S, Zilong W, Zaman Q (2021) Exploring the relationship between remittances received, education expenditures, energy use, income, poverty, and economic growth: fresh empirical evidence in the context of selected remittances receiving countries. Environ Sci Pollut Res:17865–17877
Zhou C, Wang S, Wang J (2019) Examining the influences of urbanization on carbon dioxide emissions in the Yangtze River Delta. China: Kuznets curve relationship Science of The Total Environment 675:472–482
Acknowledgements
The authors thank the editors and reviewers.
Availability of data and material
Not applicable.
Funding
This work is funded by the National Social Science Foundation Key Project: Measurement and Evaluation of Civil-Military Integration Innovation Resources Allocation Efficiency in the New Era (Key Project Grant No. 20ZDA092).
Author information
Authors and Affiliations
Contributions
All authors; Dr. Zilong Wang, Shah Zaman, Dr. Qamar uz Zaman and Dr. Samma Faiz Rasool, equally contributed to this study.
Corresponding author
Ethics declarations
Ethics approval and consent to participate
Not applicable.
Consent for publication
Not applicable.
Competing interests
The authors declare no competing interests.
Additional information
Responsible editor: Roula Inglesi-Lotz
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Wang, Z., Zaman, S., Zaman, Q.u. et al. Impact of remittances on carbon emission: fresh evidence from a panel of five remittance-receiving countries. Environ Sci Pollut Res 28, 52418–52430 (2021). https://doi.org/10.1007/s11356-021-14412-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-021-14412-5