CO2 Emissions, Remittances, Energy Intensity and Economic Development: The Evidence from Central Asia

Remittances are a crucial part of economic expansion, especially in Central Asia. Nevertheless, it is not possible to ignore its environmental damage. This paper is a pioneer in investigating the association among CO2 emissions, remittances, energy consumption and economic development in Central Asi...

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Bibliographic Details
Published inEconomies Vol. 12; no. 4; p. 95
Main Authors Kuziboev, Bekhzod, Saidmamatov, Olimjon, Khodjaniyazov, Elbek, Ibragimov, Jakhongir, Marty, Peter, Ruzmetov, Davron, Matyakubov, Umidjon, Lyulina, Ekaterina, Ibadullaev, Dilshad
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.04.2024
Subjects
Carbon dioxide
Central Asia
economic development
Economic growth
Emissions
Energy consumption
energy intensity
environmental degradation
FMOLS
Investigations
remittances
Pakistan
Central Asia
Sri Lanka
China
Philippines
India
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Summary:Remittances are a crucial part of economic expansion, especially in Central Asia. Nevertheless, it is not possible to ignore its environmental damage. This paper is a pioneer in investigating the association among CO2 emissions, remittances, energy consumption and economic development in Central Asian countries (Uzbekistan, Kazakhstan, Kyrgyzstan and Tajikistan) spanning the period of 1995–2022. As a methodology, the FMOLS estimator is applied to check linear impact and long-run association as well. Panel threshold regression model and 2SLS method are applied to examine potential non-linear relations among the studied variables. Hausman–Taylor and Amacurdy estimators are employed to control the endogeneity issue among the variables of interest. The results suggest the existence of a long-run relationship among the studied variables. Precisely, applying the FMOLS method, remittances negatively impact CO2 emissions in the long run. The relationship between CO2 emissions and remittances is distorted when the endogeneity issue is considered with the Panel threshold regression model, 2SLS method, and Hausman–Taylor and Amacurdy estimators. This distortion validates the linear impact of remittances on CO2 emissions in CA. The Dumitrescu–Hurlin causality test shows that all independent variables have a causal effect on the dependent variable, validating the effect of the studied variables. Consequently, decision-makers should facilitate remittances towards more environmentally friendly and sustainable solutions to prevent the detrimental effects of remittance inflows on carbon emissions in Central Asia.
ISSN:2227-7099
2227-7099
DOI:10.3390/economies12040095