How do remittances affect environmental sustainability in Pakistan? Evidence from NARDL approach

Waheed Ahmad, Ilhan Ozturk and Muhammad Tariq Majeed

Energy, 2022, vol. 243, issue C

Abstract: The inflow of remittances shows a significant impact on contributing to the output growth of the economy; it has a multidimensional impact on output growth and also a linkage with carbon dioxide emissions (CO2e). The present study examines the symmetric or asymmetric impact of remittances on CO2e for the period of 1980–2018 in the context of Pakistan. The Autoregressive Distributive Lag (ARDL) and nonlinear ARDL estimation techniques have been used to depict the long run symmetric or asymmetric nexus in the short and long run between remittances (REM) and CO2e. The nonlinear ARDL finding suggests that positive shock of remittances contributes to pollution emissions while the negative shock of remittances mitigates the pollution both in the short and long run. Besides, the empirical results indicate that the positive shock of REM has a higher impact in comparison with the negative shock of REM. The finding recommends that policymakers in Pakistan may consider REM as policy instruments specially to make policies and strategies which are related to sustainable environmental performance in the long run.

Keywords: Carbon emissions; Inflow of remittances; Foreign direct investment (FDI) inflow; Energy use; ARDL; NARDL; Pakistan (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:243:y:2022:i:c:s0360544221029753

DOI: 10.1016/j.energy.2021.122726

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