Effects of remittances on renewable energy consumption: Evidence from instrumental variable estimation with panel data

This study investigates the impact of remittances on renewable energy consumption (REC) using a panel of 25 top remittance-receiving countries for 1990–2018. We use a generalized two-stage least squares random effect model to estimate the impact of remittance on renewable energy use. Results showed that remittances and REC have a generally positive relationship among the studied nations. Governments may create a system to incentivize remittance-receiving households to adopt and utilize more carbon-neutral energy devices at a lower cost if they pay with remittances. This approach could lead to higher societal adoption and consumption of green energy.