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Protector or Polluter? Environmental Impacts of Remittances

Author

Listed:
  • Oussama Ben Atta
  • Refk Selmi

    (ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

  • Farid Makhlouf

    (ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

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.

Suggested Citation

  • Oussama Ben Atta & Refk Selmi & Farid Makhlouf, 2023. "Protector or Polluter? Environmental Impacts of Remittances," Working Papers hal-04194940, HAL.
    • Handle: RePEc:hal:wpaper:hal-04194940
    Note: View the original document on HAL open archive server: https://hal.science/hal-04194940
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    More about this item

    Keywords

    Remittances CO2 emissions developing countries JEL Codes: F24 Q56; Remittances; CO2 emissions; developing countries JEL Codes: F24; Q56;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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