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

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.