Protector or Polluter? Environmental Impacts of Remittances

Oussama Atta (), Refk Selmi and Farid Makhlouf

Working Papers from HAL

Abstract: As remittances are largely viewed as potential factor of financial development and economic growth, their role in polluting the environment cannot be denied. In this paper, we investigate the environmental effect of migrant remittance in the global south. By using panel data of 37 countries in the southern hemisphere from 1980 to 2014, results show that remittances worsen the environment. We, therefore, support the remittances-led emission hypothesis. Interestingly, we found that the inflows of remittances do not affect CO2 emissions directly, but indirectly through household consumption, private investment, urbanization and importations. Our results deeply suggest that policymakers in the South should (1) consider remittances as a policy instrument to design strategies related to sustainable and responsible investing, and (2) channel remittances into green consumptions and investments.

Keywords: Remittances CO2 emissions developing countries JEL Codes: F24 Q56; Remittances; CO2 emissions; developing countries JEL Codes: F24; Q56 (search for similar items in EconPapers)
Date: 2023-09-04
Note: View the original document on HAL open archive server: https://hal.science/hal-04194940
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