Remittance, Renewable Energy, and CO2 Emissions: a Vietnamese Illustration

This study aims to identify the lead-lag interaction between remittances, renewable energy consumption, and carbon dioxide emissions in Vietnam in the time-frequency domain. Using different wavelet techniques, including bivariate, partial, multiple wavelet coherence, and the wavelet-based Granger test, our findings uncover that the interplay between remittances, renewable energy consumption, and CO2 emissions is statistically significant over the short- and medium-term horizons. These outcomes highlight the importance of policymakers effectively coordinating policies to address Vietnam's significant environmental degradation. In addition, Vietnam should also actively promote renewable energy development and establish a more competitive environment for renewable energy investment.