Remittance Inflows and Energy Transition of the Residential Sector in Developing Countries

Anil Shrestha () and Makoto Kakinaka
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Anil Shrestha: Graduate School of Humanities and Social Sciences, Hiroshima University, 1-5-1 Kagamiyama, Higashi-Hiroshima, Hiroshima 739-8529, Japan

Sustainability, 2022, vol. 14, issue 17, 1-19

Abstract: The energy transition is crucial for the United Nations’ Sustainable Development Goal 7 (affordable and clean energy). As remittances account for a significant share of household incomes in developing countries, they may be associated with the energy transition from low-efficiency residential fuels (e.g., coal and wood) to high-efficiency residential fuels (e.g., gas and electricity). This study examines the association between remittances and residential energy transition in developing countries by employing a pooled mean group autoregressive distributed lag (PMG-ARDL) model for 27 developing nations from 1995 to 2018. The results indicate that a 1% increase in remittances (ratio to GDP) is associated with a 0.24% increase in the share of high-efficiency energy sources in residential energy consumption in the long run.

Keywords: energy ladder; energy transition; remittance; developing countries (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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