The environmental impact of remittance inflows in developing countries: evidence from method of moments quantile regression

Elbatanony, Mahmoud; Attiaoui, Imed; Ali, Ibrahim Mohamed Ali; Nasser, Nahla; Tarchoun, Monaem

doi:10.1007/s11356-021-13733-9

Cited by 34 publications

(13 citation statements)

References 65 publications

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“…A more expensive electricity tariff may shift consumers demand for renewable energy. Elbatanony et al (2021) also found similar results for upper-middle-income countries. However, our empirical finding is at odds with the studies of Ahmad et al (2019) and Yang et al (2020), who revealed that remittances increase environmental degradation due to an increase in aggregate demand and industrial production.…”

Section: Baseline Resultssupporting

confidence: 73%

“…Remittances have been seen as one of the household's income sources and core determinants of economic development in emerging and developing economies (Elbatanony et al 2021).…”

Section: Remittance and Environment Nexusmentioning

confidence: 99%

“…However, despite this importance, its impact on the environment triggered by an increase in household's consumption and thereafter aggregate demand and industrialization has been widely neglected. Nonetheless, some studies have tried to investigate the impact that remittance inflow has on environment degradation across different geographical locations, see for example (Elbatanony et al 2021;Jamil et al 2021;Yang et al 2021;Kibria 2021;Usama et al 2020;Qingquan et al 2020;Yang et al 2020;Neog and Yadava 2020;Doryn 2020;Sharma et al 2019;Ahmad et al 2019). These studies establish different channels through which an increase in remittances affects the quality of the environment.…”

Section: Remittance and Environment Nexusmentioning

confidence: 99%

“…For example, Elbatanony et al (2021) employed the method of the moment quantile regression to investigate the environmental impact of remittance inflow in developing countries. Their results indicate that remittance has a different impact across sub-samples and quantiles.…”

Section: Remittance and Environment Nexusmentioning

confidence: 99%

“…A few attempts have been made to empirically examine the impact of diaspora income on the environment (Ahmad et al 2019;Elbatanony et al 2021;Kibria 2021;Usman and Jahanger 2021;Yang et al 2020;Yang et al 2021;Zafar et al 2021). While the research outcomes predominantly suggest that diaspora income contributes to environmental degradation, it is noteworthy that Zafar et al (2021) report that diaspora income reduces environmental degradation, while find no relationship between the two variables for China and India.…”

Section: Introductionmentioning

confidence: 99%

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Diaspora income, financial development and ecological footprint in Africa

Arogundade

Hassan

Bila

2022

International Journal of Sustainable Development & World Ec

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This study examines the impact of diaspora income on the ecological footprint of 22 countries African countries. Methodologically, we used the Driscoll-Kraay (1998) fixed-effect model, fixed effect instrumental variable regression, Machado and Silva (2019) panel quantile regression, and Dumitrescu and Hurlin (2012) causality test. There are four main important findings from this empirical study: (1) diaspora income has a negative and statistical impact on ecological degradation, (2) financial development plays a crucial role in mitigating the environmental impact of diaspora income, and African countries must achieve an annual estimated threshold of financial development before they could reap the environmental quality impact of diaspora income, (3) the role of financial development in reducing the environmental degradation impact of diaspora income is less for higher polluting countries in Africa, (4) unidirectional causality from diaspora income to ecological footprint. In ensuring a sustainable environment, we recommend that African governments provide a tax credit to the recipient of the diaspora income who invests in environment-friendly technologies.

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Section: Baseline Resultssupporting

confidence: 73%

“…Remittances have been seen as one of the household's income sources and core determinants of economic development in emerging and developing economies (Elbatanony et al 2021).…”

Section: Remittance and Environment Nexusmentioning

confidence: 99%

Section: Remittance and Environment Nexusmentioning

confidence: 99%

Section: Remittance and Environment Nexusmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Diaspora income, financial development and ecological footprint in Africa

Arogundade

Hassan

Bila

2022

International Journal of Sustainable Development & World Ec

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Responding to the environmental effects of remittances and trade liberalization in net-importing economies: the role of renewable energy in Sub-Saharan Africa

Nwani¹,

Alola

Omoke³

et al. 2022

Econ Change Restruct

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Little is currently known about how policy choices that seek to bridge the gap between low production capacity and growing consumption demands in developing economies impact the environment. To address this research gap, a quantile-based model is used to examine the impact of three policy-relevant variables on carbon dioxide (CO 2 ) emissions: international remittance inflows, trade liberalization, and renewable energy consumption. Territorial-based CO 2 emissions are used to explain the environmental effects of the variables when emissions are calculated solely on the basis of domestic production capacity. To consider if trade-induced consumption demands provide a better measure for assessing the environmental effects of the variable, consumptionbased CO 2 emissions are used. The study focused on Sub-Saharan African countries with zero or net positive CO 2 emissions from trade. The results show, among other things, that remittances and trade liberalization increase CO 2 emissions irrespective of the accounting method. Trade, in particular, has a stronger effect through import-induced consumption activities. However, the effect is statistically insignificant for the lower quantile countries and statistically significant for the middle and upper quantile countries. Harnessing the potential of renewable energy to reduce CO 2 emissions should thus be a priority for policymakers in net-importing developing economies if production and consumption activities are to be created in less carbon-intensive ways.

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