Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329021 
Year of Publication: 
2024
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 12 [Issue:] 4 [Article No.:] 95 [Year:] 2024 [Pages:] 1-12
Publisher: 
MDPI, Basel
Abstract: 
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.
Subjects: 
2SLS
Amacurdy
Central Asia
economic development
energy intensity
environmental degradation
FMOLS
Hausman-Taylor
remittances
threshold
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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