Natural resources, renewable energy, and healthcare expenditure in the pursuit of sustainable development amidst inflation reduction act of 2022

Global warming's mounting impact mandates immediate action to curb environmental degradation. The Inflation Reduction Act, passed in 2022, was devised to cut CO2 emissions by 40% over the next ten years. This is to be achieved by fostering environmental sustainability and curbing inflation. As key elements of the Inflation Reduction Act, the consumption of Natural Resources (NTR), Renewable Energy (REC), and Healthcare (HLT) warrant further scrutiny in our quest to augment environmental sustainability. Consequently, this study seeks to explore the role of these three variables in promoting sustainability through applying a Dynamic Autoregressive Distributed Lag Model (DYNARDL). The results derived from the DYNARDL model reveal a disheartening role played by NTR and HLT in terms of environmental sustainability. In contrast, REC exhibits a promising role in promoting sustainability. Based on these findings, it is recommended that the Inflation Reduction Act be deployed more effectively. This would not only benefit ecological health but also contribute to economic prosperity. In accordance with the objectives set out in the Act, successful deployment would have a multiplier effect on the economy, facilitating a balance between the benefits accrued from the environment and the costs associated with environmental protection.