Remittance Inflows, Economic Output, Electricity Use and CO2 Emissions in the D-8 Countries: A Panel ARDL Analysis

Temitayo Blessing Majekodunmi, Mohd Shahidan Shaari, Noorazeela Zainol Abidin, Nor Hidayah Harun, Siti Nur Fathini Muhsain

Abstract


The effects of remittance inflows, economic output, and electricity use on CO2 emissions in the Developing-8 countries are examined in this study from 1989 to 2019, employing the Autoregressive Distributed Lag (ARDL) approach. The findings indicate that remittance inflows can mitigate CO2 emissions in the long run. However, economic output and electricity use can increase environmental degradation in the region in the long run. Besides, CO2 emissions can intensify in the long run if population growth and exports rise, while imports do not have impact on environmental degradation in the long run. The short-run results show that all the variables do not significantly impact the environment, except for exports and imports. Therefore, in order to lower CO2 emissions, the D-8 countries must embrace the use of more renewable energy. Although remittance inflows can mitigate environmental degradation in the D-8 countries, a brain drain that affects economic output may occur. Hence, we recommend that governments focus on improving their economies while reducing environmental degradation by using more green technology and renewable energy.


Keywords


CO2 emissions; Developing-8 countries; Economic growth; Panel ARDL; Remittances

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