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How do remittances affect environmental sustainability in Pakistan? Evidence from NARDL approach

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  • Ahmad, Waheed
  • Ozturk, Ilhan
  • Majeed, Muhammad Tariq

Abstract

The inflow of remittances shows a significant impact on contributing to the output growth of the economy; it has a multidimensional impact on output growth and also a linkage with carbon dioxide emissions (CO2e). The present study examines the symmetric or asymmetric impact of remittances on CO2e for the period of 1980–2018 in the context of Pakistan. The Autoregressive Distributive Lag (ARDL) and nonlinear ARDL estimation techniques have been used to depict the long run symmetric or asymmetric nexus in the short and long run between remittances (REM) and CO2e. The nonlinear ARDL finding suggests that positive shock of remittances contributes to pollution emissions while the negative shock of remittances mitigates the pollution both in the short and long run. Besides, the empirical results indicate that the positive shock of REM has a higher impact in comparison with the negative shock of REM. The finding recommends that policymakers in Pakistan may consider REM as policy instruments specially to make policies and strategies which are related to sustainable environmental performance in the long run.

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  • Ahmad, Waheed & Ozturk, Ilhan & Majeed, Muhammad Tariq, 2022. "How do remittances affect environmental sustainability in Pakistan? Evidence from NARDL approach," Energy, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:energy:v:243:y:2022:i:c:s0360544221029753
    DOI: 10.1016/j.energy.2021.122726
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    Cited by:

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    3. 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).
    4. Qin Meng & Jing-Wen Zhang & Yunxu Wang & Hsu-Ling Chang & Chi-Wei Su, 2023. "Green Household Technology and Its Impacts on Environmental Sustainability in China," Sustainability, MDPI, vol. 15(17), pages 1-13, August.
    5. Sumaira & mir Sajjad & Hafiz Muhammad Abubakar Siddique, 2022. "Remittances, Financial Development, and Environment Quality: Evidence from South Asia," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 113-121, December.
    6. Arvian Triantoro & Muhammad Zaheer Akhtar & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & Abdul Wahab Pathath & Muhamad Amar Mahmad & Kamil Sertoglu, 2023. "Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 34-50, March.

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