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Remittances and renewable energy: an empirical analysis

Yogeeswari Subramaniam (Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia)
Tajul Ariffin Masron (School of Management, Universiti Sains Malaysia, Penang, Malaysia)
Nanthakumar Loganathan (Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 7 December 2022

40

Abstract

Purpose

The purpose of this paper is to examine the potential role of remittances on renewable energy consumption in the top recipient developing countries from 1990 to 2016.

Design/methodology/approach

The paper uses autoregressive distributed lag (ARDL) technique to fulfil the purpose.

Findings

The empirical findings divulge that remittances positively affect renewable energy consumption. This finding implies that remittances can potentially increase the level of renewable energy consumption by increasing affordability if proper incentives and encouragement are offered.

Practical implications

Given the enormous potential that renewable energy can bring to an economy, the government should offer indirect incentives to encourage recipients to allocate a portion of their remittances to renewable energy projects, either as minor investors or users.

Originality/value

To the best of the authors’ knowledge, this paper is novel for two reasons. First, this study adds to the existing literature by empirically examining the link between remittances and renewable energy consumption in the top five remittance recipients, which have never been studied before. Second, the findings of this study will have policy implications not only for the top remittance recipients but also for other remittance recipients, particularly for developing countries.

Keywords

Acknowledgements

Funding: The first author wishes to thank Universiti Teknologi Malaysia for funding the project under the UTM Fundamental Research (UTMFR) with cost center No Q.J130000.3855.21H98.

Authors contributions: The authors have participated in conception and design, or analysis and interpretation of the data; drafting the article or revising it critically for important intellectual content; and approval of the final version.

Availability of data and materials: Data will be available upon request.

Citation

Subramaniam, Y., Masron, T.A. and Loganathan, N. (2022), "Remittances and renewable energy: an empirical analysis", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-03-2022-0009

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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