The dynamic linkage between remittances, export diversification, education, renewable energy consumption, economic growth, and CO2 emissions in top remittance‐receiving countries

In recent years, the literature on financial development, public finance, and other areas has substantially increased; however, remittances are among the most neglected sources with significantly larger resource inflow that may serve the purpose of reducing environmental degradation. The literature on export diversification and education is also limited, with conflicting findings. With this in mind, the current research examined the relationship among remittances, export diversification, education, and CO2 emissions controlling for renewable energy and economic growth in a panel of 22 top remittance‐receiving countries over the period 1986–2017. The study employed second‐generation unit root techniques in econometric methodology, Westerlund and Edgerton cointegration approach with structural breaks, Cup‐FM and CUP‐BC long‐run estimation techniques, and generalized quantile regression method. The findings indicate that remittances help in reducing environmental degradation as they have a negative effect on emissions. Likewise, export diversification reduces CO2 emissions, and renewable energy also contributes to decreasing CO2 emissions. In contrast, economic growth is conducive to environmental degradation. The study also finds a robust estimate of education as a stimulant of environmental degradation. Based on these novel findings, several policy suggestions are discussed.