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Private health expenditures and environmental quality

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  • Safi, Fatma
  • Ben Hassen, Lobna

Abstract

This paper presents a simple two-period overlapping generations model that contains environmental and health issues. It investigates an intergenerational conflict between old and young generations as regards two defensive expenditures offsetting the influence of a worsening environment represented here by health care and environmental investment. Workers support environmental maintenance while retirees prefer investing in health care. The authors have shown that an increasing support for private health expenditure leads to a higher level of capital accumulation and leads also to a higher level of environmental quality if the maintenance efforts are higher than consumption externalities.

Suggested Citation

  • Safi, Fatma & Ben Hassen, Lobna, 2017. "Private health expenditures and environmental quality," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-24.
    • Handle: RePEc:zbw:ifweej:20173
    DOI: 10.5018/economics-ejournal.ja.2017-3
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    References listed on IDEAS

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    1. Carlotta Balestra & Davide Dottori, 2012. "Aging society, health and the environment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1045-1076, July.
    2. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, vol. 116(1), pages 119-137, May.
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    Cited by:

    1. Fei Peng & Shibiao Zhou & Tao Ding & Huaqing Wu, 2023. "Impact of fiscal expenditure stress on green transformation risk: evidence from China education authority reform," Economic Change and Restructuring, Springer, vol. 56(6), pages 4565-4601, December.
    2. 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.
    3. Muhammad Azam & Liu Liu & Najid Ahmad, 2021. "Impact of institutional quality on environment and energy consumption: evidence from developing world," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 1646-1667, February.

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    More about this item

    Keywords

    environmental expenditure; health care expenditure; overlapping generation; age-based conflict;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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