The role of remittances inflow, renewable and non-renewable energy consumption in the environment: accounting ecological footprint indicators for top remittance-receiving countries
Abstract This study determines the dynamic linkages between remittances inflow, foreign direct investment, and ecological footprint in top ten remittance-receiving counties in the presence of economic growth and renewable and non-renewable energy under the framework of Environmental Kuznets Curve (EKC) hypothesis over the period of 1990–2018 by employing the continuously updated fully modified (CUP-FM) and the continuously updated bias-corrected (CUP-BC) estimators. The results show that remittances inflow, foreign direct investment, and non-renewable energy utilization affect the ecological footprint positively while renewable energy utilization negatively impacts on ecological footprint. This study also supports the pollution haven hypothesis and inverted U-shaped EKC hypothesis. Furthermore, in order to account for the national heterogeneity, we have executed a country-wise EKC hypothesis, the results of the full modified ordinary least square (FMOLS) support the inverted U-shaped EKC hypothesis in the case of Bangladesh, China, France, India, Pakistan, and Vietnam while displaying a U-shaped curve in Germany, Mexico, and Nigeria. Besides, the results are robust to various robustness analyses that we have executed for inspection of the reliability of our main findings. Finally, this study presents important policy implications with respect to top remittance-receiving countries.