Revisiting the nexus between migration, energy consumption, innovation, and CO2 emissions in Germany

Summary: The study investigates the nexus between innovation, labor migrations, energy consumption and CO2 emissions in Germany for the period 1990–2020. This study applied a dynamic simulated ARDL (DS-ARDL) model for estimation, which can observe the negative and positive variations in variables both in long run and short run. The dependent variable in DS-ARD provides a more intuitive picture of dynamic effects than coefficients alone. In Addition, DS-ARDL may provide reliable estimations even if sample size is smaller. The results of this study suggest a long-term relationship among innovation, migration, energy consumption, and CO2 emissions. The results also confirm that migration has a positive relationship with CO2 emissions, while innovation has an adverse effect on CO2 emissions in long run. Policymakers can take action on both ends of the supply and demand spectrum to lessen the impact of migration on Germany's CO2 emissions. Human capital accumulation provided by international migration; therefore, receiving countries should encourage rapid technological advancement and improve their citizens' spending habits.