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Does environmental quality influence health expenditures? Empirical evidence from a panel of selected OECD countries

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  • Narayan, Paresh Kumar
  • Narayan, Seema

Abstract

In this paper we examine the role of environmental quality in determining per capita health expenditures. We take a panel cointegration approach in order to explore the possibility of estimating both short-run and long-run impacts of environmental quality. Our empirical analysis is based on eight OECD countries, namely Austria, Denmark, Iceland, Ireland, Norway, Spain, Switzerland, and the UK for the period 1980-1999. We find that per capita health expenditure, per capita income, carbon monoxide emissions, sulphur oxide emissions and nitrogen oxide emissions are panel cointegrated. While short-run elasticities reveal that income and carbon monoxide emissions exert a statistically significant positive effect on health expenditures, in the long-run in addition to income and carbon monoxide, we find that sulphur oxide emissions have a statistically significant positive impact on health expenditures.

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  • Narayan, Paresh Kumar & Narayan, Seema, 2008. "Does environmental quality influence health expenditures? Empirical evidence from a panel of selected OECD countries," Ecological Economics, Elsevier, vol. 65(2), pages 367-374, April.
  • Handle: RePEc:eee:ecolec:v:65:y:2008:i:2:p:367-374
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    Cited by:

    1. Violeta – Maria Cimpoeru, 2012. "An Empirical Study on Key Indicators of Environmental Quality: Green Budgeting - a Catalyst for Sustainable Economy and a Factor for Institutional Change," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 485-500, June.
    2. Lean, Hooi Hooi & Smyth, Russell, 2010. "CO2 emissions, electricity consumption and output in ASEAN," Applied Energy, Elsevier, vol. 87(6), pages 1858-1864, June.
    3. Fatulescu, Puiu, 2011. "Cheltuielile Publice în domeniul Sănătății- principalii factori care le influențează
      [Public Health Systems Expenditures and the main factors that drives them]
      ," MPRA Paper 37191, University Library of Munich, Germany.
    4. repec:eco:journ2:2018-03-7 is not listed on IDEAS
    5. repec:spr:soinre:v:133:y:2017:i:1:d:10.1007_s11205-016-1357-7 is not listed on IDEAS
    6. Nicholas Apergis & Tsangyao Chang & Christina Christou & Rangan Gupta, 2017. "Convergence of Health Care Expenditures Across the US States: A Reconsideration," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 303-316, August.

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