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The Effect of Environmental Degradation on the Financing of Healthcare

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  • Nisreen Moosa
  • Huy N. A. Pham

Abstract

Empirical work on the relation between health expenditure and environmental degradation is based predominantly on the ARDL approach to co-integration and to a lesser extent on panel co-integration as applied to a log-log specification. The results invariably show that environmental degradation has a positive effect on health expenditure. In this article, we examine the bivariate relation between environmental degradation and health expenditure, since this relation seems to hold strongly, which can be explained in terms of the environmental Kuznets curve. We cast a shadow of doubt on the practice of using the log-log specification without any theoretical or empirical justification. Our results show that the relation between health expenditure and environmental degradation can be either positive or negative, depending on the level of per capita income.

Suggested Citation

  • Nisreen Moosa & Huy N. A. Pham, 2019. "The Effect of Environmental Degradation on the Financing of Healthcare," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(2), pages 237-250, January.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:237-250
    DOI: 10.1080/1540496X.2018.1439375
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    Cited by:

    1. Ugur Korkut Pata, 2021. "Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1427-1439, December.
    2. Wei Zhou & Fan Zhang & Shihao Cui & Ke-Chiun Chang, 2022. "Is There Always a Negative Causality between Human Health and Environmental Degradation? Current Evidence from Rural China," IJERPH, MDPI, vol. 19(17), pages 1-13, August.
    3. Shang, Yunfeng & Razzaq, Asif & Chupradit, Supat & Binh An, Nguyen & Abdul-Samad, Zulkiflee, 2022. "The role of renewable energy consumption and health expenditures in improving load capacity factor in ASEAN countries: Exploring new paradigm using advance panel models," Renewable Energy, Elsevier, vol. 191(C), pages 715-722.
    4. Samia Nasreen, 2021. "Association between health expenditures, economic growth and environmental pollution: Long‐run and causality analysis from Asian economies," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(3), pages 925-944, May.
    5. Cheng-Feng Wu & Fangjhy Li & Hsin-Pei Hsueh & Chien-Ming Wang & Meng-Chen Lin & Tsangyao Chang, 2020. "A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan," IJERPH, MDPI, vol. 17(4), pages 1-17, February.

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