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Dynamic linkages among CO2 emissions, health expenditures, and economic growth: empirical evidence from Pakistan

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Abstract

The linkage between high concentration of greenhouse gases (GHGs) and climate change is well recognized as there is severe influence of climate change on public health. Carbon dioxide is most prominent GHG which deteriorates the environment and impacts human health. On the parallel, economic growth also affects health conditions sometimes positively or vice versa. The objective of this research work is to examine the dynamic linkages among CO2 emissions, health expenditures, and economic growth in the presence of gross fixed capital formation and per capita trade by using auto regressive distributive lag (ARDL) model for Pakistan covering annual data from the year 1995–2017. Our empirical results show that there is significant long run as well as short-term causal relationship between health expenditure, CO2 emissions, and economic growth in Pakistan. Bidirectional relationship of Granger causality is found between health expenditures and CO2 emissions, and further between health expenditures and economic growth. Short-run unidirectional causality is running from carbon emissions to health-related expenditures. The bidirectional causal relationship is also investigated between carbon emissions and growth as well as gross fixed capital formation and growth. Then, policy recommendations towards controlling pollution, particularly CO2 emissions and health expenditures without compromising economic growth are suggested.

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Notes

  1. Total health expenditure is the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation.

    The estimated health expenditure of Pakistan for the fiscal year of 2016–2017 are Rs. 908 billion with increase of 151 billion over the fiscal year 2014–2015

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Funding

This study is supported by the National Science Fund for Distinguished Young Scholars (Reference No. 71625003), Yangtze River Distinguished Professor of MOE, National Key Research and Development Program of China (Reference No. 2016YFA0602504), National Natural Science Foundation of China (Reference No. 91746208, 71573016, 71403021, 71521002, 71774014), National Social Sciences Fundation (Reference No.17ZDA065). Humanities and Social science Fund of Ministry of Education of China (Reference No.17YJC630145), and China Postdoctoral Science Foundation (Reference No. 2017M620648).

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Authors and Affiliations

  1. School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China

    Zhaohua Wang, Muhammad Mansoor Asghar, Syed Anees Haider Zaidi & Bo Wang

  2. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China

    Zhaohua Wang, Muhammad Mansoor Asghar & Bo Wang

  3. Collaborative Innovation Center of Electric Vehicles in Beijing, Beijing, 100081, China

    Zhaohua Wang

  4. Beijing Key Lab of Energy Economics and Environmental Management, Beijing, 100081, China

    Zhaohua Wang

  5. Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, 100081, China

    Zhaohua Wang

  6. COMSATS University Islamabad, Sahiwal Campus, Pakistan

    Syed Anees Haider Zaidi

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  1. Zhaohua Wang
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Appendix

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Table 8 Literature on health-related expenditures, economic growth, and carbon emissions
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Wang, Z., Asghar, M.M., Zaidi, S.A.H. et al. Dynamic linkages among CO2 emissions, health expenditures, and economic growth: empirical evidence from Pakistan. Environ Sci Pollut Res 26, 15285–15299 (2019). https://doi.org/10.1007/s11356-019-04876-x

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