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The relationship between healthcare expenditure, CO2 emissions and natural resources: evidence from developing countries

Author

Listed:
  • Sabina Ampon-Wireko
  • Lulin Zhou
  • Xinglong Xu
  • Lamini Dauda
  • Isaac Adjei Mensah
  • Ebenezer Larnyo
  • Easmond Baah Nketiah

Abstract

The paper examines the association between health expenditure, carbon emission, economic growth, natural resources, and population in developing countries for 2000–2018. It further explores the relationship between these variables over the same period. The study applied Pooled mean group (PMG) and Dynamic ordinary least square (DOLS) estimations to explore the long and short-term impact of environmental pollution, economic growth, and natural resources on health expenditure. PMG and the DOLS results show that economic growth and environmental pollution, and natural resources increase health expenditure at the panel level. However, improved sanitation reduces health spending. The findings for the individual country level from the FMOLS confirmed similar results for some countries. Furthermore, there is bidirectional causality between health spending and economic growth. Developing nations should implement strategic environment management policies that enhanced clean and healthy air to decrease the pressure on health care expenses.

Suggested Citation

  • Sabina Ampon-Wireko & Lulin Zhou & Xinglong Xu & Lamini Dauda & Isaac Adjei Mensah & Ebenezer Larnyo & Easmond Baah Nketiah, 2022. "The relationship between healthcare expenditure, CO2 emissions and natural resources: evidence from developing countries," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 11(3), pages 272-286, July.
    • Handle: RePEc:taf:teepxx:v:11:y:2022:i:3:p:272-286
    DOI: 10.1080/21606544.2021.1979101
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    Cited by:

    1. Maryam Piran & Alireza Sharifi & Mohammad Mahdi Safari, 2023. "Exploring the Roles of Education, Renewable Energy, and Global Warming on Health Expenditures," Sustainability, MDPI, vol. 15(19), pages 1-11, September.

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