What is the role of remittance and education for environmental pollution? - Analyzing in the presence of financial inclusion and natural resource extraction

Syed Qasim Ali Shah; Umra Waris; Sheraz Ahmed; Ephraim Bonah Agyekum; Abdelazim G Hussien; Mustafa Kamal; Masood Ur Rehman; Salah Kamel

doi:10.1016/j.heliyon.2023.e17133

What is the role of remittance and education for environmental pollution? - Analyzing in the presence of financial inclusion and natural resource extraction

Heliyon. 2023 Jun 10;9(6):e17133. doi: 10.1016/j.heliyon.2023.e17133. eCollection 2023 Jun.

Authors

Syed Qasim Ali Shah¹, Umra Waris², Sheraz Ahmed², Ephraim Bonah Agyekum³, Abdelazim G Hussien^{4

5

6}, Mustafa Kamal⁷, Masood Ur Rehman⁸, Salah Kamel⁹

Affiliations

¹ Department Riphah School of Business and Management (RSBM), Riphah International University Islamabad, Lahore, Pakistan.
² Department of Economics and and Quantitative Methods, HSM, University of Management and Technology, Lahore, Pakistan.
³ Department of Nuclear and Renewable Energy, Ural Federal University Named After the First President of Russia Boris, 19 Mira Street, Ekaterinburg, 620002, Yeltsin, Russia.
⁴ Department of Computer and Information Science, Linköping University, Linköping, Sweden.
⁵ Faculty of Science, Fayoum University, Fayoum, Egypt.
⁶ MEU Research Unit, Middle East University, Amman, Jordan.
⁷ Department of Basic Sciences, College of Science and Theoretical Studies, Saudi Electronic University, Dammam, 32256, Saudi Arabia.
⁸ Department of Information Technology, College of Computing and Informatics, Saudi Electronic University, Dammam, 32256, Saudi Arabia.
⁹ Electrical Engineering Department, Faculty of Engineering, Aswan University, 81542, Aswan, Egypt.

Abstract

This study assessed the impact of gross domestic product (GDP), education, natural resources, remittances, and financial inclusion on carbon emissions in G-11 countries from 1990 to 2021. Based on the negative impact of pollution and the need for sustainable development, this study examined factors affecting CO₂ emissions in G-11 countries using non-linear panel ARDL model. The study found that a positive GDP shock increases CO₂ emissions in the short and long term, while a negative shock decreases emissions in the short term and increases emissions in the long term. Education was found to increase CO₂ emissions in the long term but decrease them in the short term, emphasizing the need for education on combating emissions. Natural resources were also found to increase emissions in the long term, highlighting the need for government-defined institutions to minimize extraction effects and enforce transparency and accountability. Positive changes in personal remittances and financial inclusion were found to increase emissions in both the short and long term, suggesting the need for policies that encourage renewable energy sources and energy efficiency improvement. The study concludes that policymakers should prioritize efficient resource allocation, promote renewable energy usage, and enhance environmental awareness to achieve sustainable development goals in G-11 countries. The possible applications of this study include the use of the models to investigate the asymmetric effects on CO₂ emissions. This model can be applied in future studies to examine the relationship between GDP, education, natural resources, personal remittances, financial inclusion, and CO₂ emissions in other countries.

Keywords: Environmental quality; G-11 countries; NPARDL; Sustainability development.