CO 2 Emissions, Remittances, Energy Intensity and Economic Development: The Evidence from Central Asia

Bekhzod Kuziboev, Olimjon Saidmamatov (), Elbek Khodjaniyazov, Jakhongir Ibragimov, Peter Marty (), Davron Ruzmetov, Umidjon Matyakubov, Ekaterina Lyulina and Dilshad Ibadullaev
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Bekhzod Kuziboev: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan
Olimjon Saidmamatov: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan
Elbek Khodjaniyazov: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan
Jakhongir Ibragimov: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan
Peter Marty: Institute of Natural Resource Sciences, Zurich University of Applied Sciences (ZHAW), 8820 Wädenswil, Switzerland
Davron Ruzmetov: Faculty of Economics and Engineering Technology, Urgench Ranch University of Technology, Urgench 220100, Uzbekistan
Umidjon Matyakubov: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan
Ekaterina Lyulina: Department of Science, Uzbek State University of Physical Education and Sport, Str. Sportivnaya 19, Chirchik 111700, Uzbekistan
Dilshad Ibadullaev: Faculty of Socio-Economic Sciences, Urgench State University, Urgench 220100, Uzbekistan

Economies, 2024, vol. 12, issue 4, 1-12

Abstract: Remittances are a crucial part of economic expansion, especially in Central Asia. Nevertheless, it is not possible to ignore its environmental damage. This paper is a pioneer in investigating the association among CO 2 emissions, remittances, energy consumption and economic development in Central Asian countries (Uzbekistan, Kazakhstan, Kyrgyzstan and Tajikistan) spanning the period of 1995–2022. As a methodology, the FMOLS estimator is applied to check linear impact and long-run association as well. Panel threshold regression model and 2SLS method are applied to examine potential non-linear relations among the studied variables. Hausman–Taylor and Amacurdy estimators are employed to control the endogeneity issue among the variables of interest. The results suggest the existence of a long-run relationship among the studied variables. Precisely, applying the FMOLS method, remittances negatively impact CO 2 emissions in the long run. The relationship between CO 2 emissions and remittances is distorted when the endogeneity issue is considered with the Panel threshold regression model, 2SLS method, and Hausman–Taylor and Amacurdy estimators. This distortion validates the linear impact of remittances on CO 2 emissions in CA. The Dumitrescu–Hurlin causality test shows that all independent variables have a causal effect on the dependent variable, validating the effect of the studied variables. Consequently, decision-makers should facilitate remittances towards more environmentally friendly and sustainable solutions to prevent the detrimental effects of remittance inflows on carbon emissions in Central Asia.

Keywords: environmental degradation; remittances; energy intensity; economic development; Central Asia; FMOLS; threshold; 2SLS; Hausman–Taylor; Amacurdy (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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