Remittance Inflows, Economic Output, Electricity Use and CO2 Emissions in the D-8 Countries: A Panel ARDL Analysis

Temitayo Blessing Majekodunmi, Mohd Shahidan Shaari, Noorazeela Zainol Abidin, Nor Hidayah Harun, Siti Nur Fathini Muhsain


The effects of remittance inflows, economic output, and electricity use on CO2 emissions in the Developing-8 countries are examined in this study from 1989 to 2019, employing the Autoregressive Distributed Lag (ARDL) approach. The findings indicate that remittance inflows can mitigate CO2 emissions in the long run. However, economic output and electricity use can increase environmental degradation in the region in the long run. Besides, CO2 emissions can intensify in the long run if population growth and exports rise, while imports do not have impact on environmental degradation in the long run. The short-run results show that all the variables do not significantly impact the environment, except for exports and imports. Therefore, in order to lower CO2 emissions, the D-8 countries must embrace the use of more renewable energy. Although remittance inflows can mitigate environmental degradation in the D-8 countries, a brain drain that affects economic output may occur. Hence, we recommend that governments focus on improving their economies while reducing environmental degradation by using more green technology and renewable energy.


CO2 emissions; Developing-8 countries; Economic growth; Panel ARDL; Remittances

Full Text:



Ong R., 2022. Remittances Grow 5% in 2022, Despite Global Headwinds (Press Release No: 2023/036/SPJ). The World Bank.

Ersek H., 2021. The remittance effect: A lifeline for developing economies through the pandemic and into recovery. Oxford Economic Report [online serial], Retrieved May 17, 2022 from the World Wide Web:

World Bank. 2005. Global Economic Prospects 2006. Economic Implications of Remittances and Migration. The World Bank.

Yang B., Jahanger A., and Khan M.A., 2020. Does the inflow of remittances and energy consumption increase CO2 emissions in the era of globalization? A global perspective. Air Quality, Atmosphere and Health 13(11): 1313-1328.

Jamil K., Liu D., Gul R.F., Hussain Z., Mohsin M., Qin G., and Khan F.U., 2021. Do remittance and renewable energy affect CO2 emissions? An empirical evidence from selected G-20 countries. Energy and Environment.

Brown, L., McFarlane, A., Campbell, K., and Das, A., 2020. Remittances and CO2 emissions in Jamaica: an asymmetric modified environmental Kuznets curve. The Journal of Economic Asymmetries 22: 00166.

Yang B., Jahanger A., and Ali M., 2021. Remittance inflows affect the ecological footprint in BICS countries: do technological innovation and financial development matter? Environmental Science and Pollution Research 28(18): 23482-23500.

Williamson D., Munro K., and Carlot M., 2021. Climate Change: A hunger crisis in the making. USA, Action against hunger. [Online], Retrieved May 18, 2022 from the World Wide Web: 2022. CO2 emissions for the D8 countries. [Online], Retrieved May 18, 2022 from the World Wide Web:

Oganesyan M., 2017. Carbon Emissions, Energy Consumption and Economic Growth in the BRICS. MS Thesis (unpublished). International Business School Jonkoping University.

Carlos L.C., 2021. The Effects of IMF's Lending and Conditionalities on Economic Growth: Case of SADC Countries. MS Thesis. 4906. Eastern Illinois University.

Shoaib H.M., Rafique M.Z., Nadeem A.M., and Huang S., 2020. Impact of financial development on CO2 emissions: A comparative analysis of developing countries (D8) and developed countries (G8). Environmental Science and Pollution Research, 27: 12461-12475. Retrieved May 20, 2022 from the World Wide Web:

Bekhet H.A., Matar A., and Yasmin T., 2017. CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models. Renewable and Sustainable Energy Reviews 70: 117–132.

Manta A.G., Florea N.M., Bădîrcea R.M., Popescu J., Cîrciumaru D., and Doran M.D., 2020. The nexus between carbon emissions, energy use, economic growth and financial development: evidence from central and eastern European countries. Sustainability 12L 7747.

Nasir M.A., Duc Huynh T.L., and Xuan Tram H.T., 2019. Role of financial development, economic growth and foreign direct investment in driving climate change: A case of emerging ASEAN. Journal of Environmental Management 242: 131–141.

Rozendal, C., 2020. The influence of GDP, FDI and energy consumption on the amount of CO2 emissions. An econometric analysis using a panel ARDL model. MS Thesis. Wageningen University, The Netherlands.

Hanif I., Raza S.M.F., Gago-de-Santos P., and Abbas Q., 2019. Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: Some empirical evidence. Energy 171: 493-501.

Miloud Lacheheb A.S. Rahim, A., and Sirag A., 2015. Economic growth and carbon dioxide emissions: investigating the environmental Kuznets curve hypothesis in Algeria. International Journal of Energy Economics and Policy 5(4): 1125-1132.

Chen Y., Wang Z., and Zhong Z., 2019. CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China. Renewable Energy 131: 208-216.

Hongxing Y., Abban O.J., Boadi A.D., and Ankomah-Asare E.T., 2021. Exploring the relationship between economic growth, energy consumption, urbanization, trade, and CO2 emissions: a PMG-ARDL panel data analysis on regional classification along 81 BRI economies. Environmental Science and Pollution Research 28(46): 66366-66388.

Worldometers, 2022. African Countries by population, 2023. Worldometers. Retrieved July 10, 2022 from the World Wide Web:

Olaniyan, O., Sulaimon M.D., and Ademola W., (2018). Determinants of household direct CO2 emissions: Empirical evidence from Nigeria. Munich Personal RePEc Archive. Retrieved December 10, 2021 from the World Wide Web:

Luzzatia T., Orsinib M., and Gucciardia G., 2018. A multiscale reassessment of the environmental Kuznets Curve for energy and CO2 emissions. Energy Policy 122: 612-621.

Avci S., 2019. Empirical Analysis of Renewable Energy and Economic Growth Relationship: A Study of Turkey and D-8 Countries. MS Thesis (unpublished). Department of Economics. Ankara Yildirim Beyazit University.

Shaari M.S., 2020. The impact of renewable energy consumption and economic growth on CO2 emissions: new evidence using Panel ARDL study of selected countries. International Journal of Energy Economics and Policy 10(6), 617-623.

Oyewo A., Arman A., Dmitirii B., Christian B., 2018. Pathways to a fully sustainable electricity supply for Nigeria in the mid-term future. Energy Conversion and Management 178: 44–64.

Haiges R., Wang Y.D., Ghoshray A., and Roskilly A.P., 2017. Optimization of Malaysia’s power generation mix to meet the electricity demand by 2050. Energy Procedia 142: 2844-2851.

Energy Information Agency, 2021. Malaysia. Retrieved from on the 30 May, 2022

Rahman A.R.A.; Shaari M.S.; Masnan F.; Esquivias M.A., 2022. The impacts of energy use, tourism and foreign workers on CO2 emissions in Malaysia. Sustainability 14: 2461.

Carrasco C.A. and E.D. Tovar-Garcia., 2021. High-tech trade as determinant of the US bilateral trade balance. Economics of Innovation and New Technology 1-18.

Musah M., Kong Y., Mensah I.A., Li K., Vo X.V., Bawuah J., and Donkor M., 2021. Trade openness and CO2 emanations: a heterogeneous analysis on the developing eight (D8) countries. Environmental Science and Pollution Research 28(32): 44200-44215

Salman M., Long X., Dauda L., Mensah C.N., and Muhammad S., 2019. Different impacts of export and import on carbon emissions across 7 ASEAN countries: a panel quantile regression approach. Science of the Total Environment 686: 1019-1029.

Li K., Wang X., Musah M., Ning Y., Murshed M., Alfred M., and Wang L., 2022. Have international remittance inflows degraded environmental quality? A carbon emission mitigation analysis for Ghana. Environmental Science and Pollution Research 1-17.

Karsalari A.R., Mehrara M., Musai M., and Mohammadi M., 2014. Relationship between economic growth, trade and environment: evidence from D8 countries. International Journal of Academic Research in Accounting, Finance and Management Sciences 4(2): 324-330.

Haldar A. and N. Sethi. 2021. Effect of institutional quality and renewable energy consumption on CO2 emissions − an empirical investigation for developing countries. Environmental Science and Pollution Research 28(12): 15485-15503.

Islam F., Shahbaz M., Ahmed A.U., and Alam M. M., 2013. Financial development and energy consumption nexus in Malaysia: A multivariate time series analysis. Economic Modelling 30: 435–441.

Bakhsh K., Rose S., Ali M.F., Ahmad N., and Shahbaz M., 2017. Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: new evidences from 3SLS. Journal of Environmental Management 196: 627-632.

Mikayilov J., Shukurov V., and Yusifov S., 2017. The impact of economic growth and population on CO2 emissions from transport sector. Azerbaijan case. Academic Journal of Economic Studies 3(2): 60-67

Shaari M.S., Abdul Karim Z., and Zainol Abidin N., 2020. The effects of energy consumption and national output on CO2 emissions: new evidence from OIC countries using a panel ARDL analysis. Sustainability 12(8): 3312.

Begum R.A., Sohag K., Abdullah S.M.S., and Jaafar M., 2015. CO2 emissions, energy consumption, economic and population growth in Malaysia. Renewable and Sustainable Energy Reviews 41: 594-601.

Alam M.M., Murad M.W., Noman A.H.M., and Ozturk I., 2016. Relationships among carbon emissions, economic growth, energy consumption and population growth: testing environmental Kuznets curve hypothesis for Brazil, China, India and Indonesia. Ecological Indicators 70: 466-479.

Salahuddin, M., Alam K., Ozturk I., and Sohag K., 2018. The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renewable and Sustainable Energy Reviews 81: 2002-2010.

Jafri M.A.H., Abbas S., Abbas S.M.Y., and Ullah S., 2022. Caring for the environment: measuring the dynamic impact of remittances and FDI on CO2 emissions in China. Environmental Science and Pollution Research 29(6): 9164-9172.

Saidi K. and A. Omri. 2020. The impact of renewable energy on carbon emissions and economic growth in 15 major renewable energy-consuming countries. Environmental Research 186: 109567.

Pedroni P., 1999. Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bull. Econ. 61 (special issue), 653–670

Ibemere D., 2021. Ripples Nigeria. World Bank says 50% of Nigerian youths want to leave the country. Retrieved from on 29th May, 2021.

Cousin E., 2016. Egypt’s youth and the pull to migrate [Online serial] Retrieved June 11, 2022 from the World Wide Web: