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Does the inflow of remittances cause environmental degradation? Empirical evidence from China

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  • Manzoor Ahmad
  • Zahoor Ul Haq
  • Zeeshan Khan
  • Shoukat Iqbal Khattak
  • Zia Ur Rahman
  • Shehzad Khan

Abstract

Remittances inflow plays a significant role in promoting the economic welfare of a country; it has a multidimensional effect on the economy and links with the carbon emissions. This study examines the possible asymmetric transmissions from remittances to carbon dioxide emissions (CO2) in China using time series data from 1980 to 2014. The Non-linear NARDL method is employed to check the longrun asymmetric relationship between remittances inflow and carbon emissions. The findings show that a positive shock in remittances causes an increase in CO2 emissions, while a negative shock in remittances causes a decrease in CO2 emissions. The results support the existence of an asymmetric cointegrating relationship between remittances and CO2 emissions in both short run and the long run. The NARDL dynamic multiplier graph assumes that positive remittances shocks are highe compared to the negative remittances shocks. It suggests that policymakers in China should consider remittances as a policy instrument especially designing strategies and policies related to sustainable environmental quality in the long run.

Suggested Citation

  • Manzoor Ahmad & Zahoor Ul Haq & Zeeshan Khan & Shoukat Iqbal Khattak & Zia Ur Rahman & Shehzad Khan, 2019. "Does the inflow of remittances cause environmental degradation? Empirical evidence from China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 2099-2121, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:2099-2121
    DOI: 10.1080/1331677X.2019.1642783
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    Cited by:

    1. Karmaker, Shamal Chandra & Barai, Munim Kumar & Sen, Kanchan Kumar & Saha, Bidyut Baran, 2023. "Effects of remittances on renewable energy consumption: Evidence from instrumental variable estimation with panel data," Utilities Policy, Elsevier, vol. 83(C).
    2. Haiying Liu & Majed Alharthi & Muhammad Wasif Zafar & Muhammad Sohail Tahir & Muhammad Mansoor Asghar, 2023. "Understanding the Role of Technology in Asian Economies: The Environmental Impact of Remittances and Economic Complexity," Evaluation Review, , vol. 47(6), pages 951-982, December.
    3. Bekhzod Kuziboev & Olimjon Saidmamatov & Elbek Khodjaniyazov & Jakhongir Ibragimov & Peter Marty & Davron Ruzmetov & Umidjon Matyakubov & Ekaterina Lyulina & Dilshad Ibadullaev, 2024. "CO 2 Emissions, Remittances, Energy Intensity and Economic Development: The Evidence from Central Asia," Economies, MDPI, vol. 12(4), pages 1-12, April.
    4. Huang, Lilong & Dong, Dongdong & Dong, Xueqin, 2023. "Natural resources extraction, financial expansion and remittances: South Asian economies perspective of sustainable development," Resources Policy, Elsevier, vol. 84(C).
    5. Haiying Liu & Avik Sinha & Mehmet Akif Destek & Majed Alharthi & Muhammad Wasif Zafar, 2022. "Moving toward sustainable development of sub‐Saharan African countries: Investigating the effect of financial inclusion on environmental quality," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 2015-2024, December.

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