Does the inflow of remittances and energy consumption increase CO 2 emissions in the era of globalization? A global pers
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Does the inflow of remittances and energy consumption increase CO2 emissions in the era of globalization? A global perspective Bo Yang 1 & Atif Jahanger 1
&
Muhammad Atif Khan 2,3
Received: 26 May 2020 / Accepted: 21 July 2020 # Springer Nature B.V. 2020
Abstract In recent decades, remittances inflow has become a major source of capital which has multidimensional consequences on various economic indicators and potentially associated with CO2 emissions. This study investigates the impact of remittances, energy use, and globalization on CO2 emissions using a global sample of 97 countries during 1990-2016. Our findings based on robust system GMM indicate that remittances and energy use increases CO2 emissions, however, globalization reduces CO2 emissions. To capture the national difference, this study divides the global sample into two sub-samples: first comprised of developed countries and second developing and emerging countries. Interestingly our findings are similar in both sub-samples. Further, our results are robust to various robustness checks, which ensures the reliability of our findings. Based on our results, we suggest governments, regulators and other stakeholders to mitigate the adverse impact of remittances and energy use on environmental quality by strict market regulations and monitoring, allocating substantial financial resource to research and development for innovating environmental friendly production technologies and renewable energy sources and by giving incentives i.e tax rebates and subsidies on imports of environment-friendly production technology from the advanced countries. Lastly, considering the negative impact of globalization on CO2 emissions, governments can use globalization as a tool to reduce CO2 emissions and promote environmental quality. Keywords CO2 emissions . remittances . globalization . energy use JEL Classification Q40 . F24 . F64 . C32
Introduction Environmental degradation has currently emerged as a major challenge for the international community. Over the last decades of the years, carbon dioxide (hereafter CO2) emission has been increased at a greater pace (Seetanah et al. 2019) Electronic supplementary material The online version of this article (https://doi.org/10.1007/s11869-020-00885-9) contains supplementary material, which is available to authorized users. * Atif Jahanger [email protected] 1
School of Economies, Zhongnan University of Economics and Law, Wuhan 430073, China
2
School of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China
3
Department of Commerce, Faculty of Management Science, University of Kotile, City Kotile, Azad Jammu and Kashmir 11100, Pakistan
which has an adverse impact on human and sustainable development (Acheampong 2019). Various international agencies are trying their best to control CO2 and mitigate environmental degradation but still, the emission of CO2 has increasing trends (IEA 2018). Therefore, researchers have extensively investigated the sources of CO2 emissions and have identified various f
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