Does Environmental Quality Drive Health Spending? A Cross-Country Analysis

The paper aims at empirically investigating the long-run explanatory power of environmental quality and energy intensity towards aggregate health spending volumes for a set 108 countries. significance CO2-related pollution levels as determinants is well-evident, proven from modern pooled data econometric procedures applied. Keeping in view previous research on subject, sample countries disaggregated into four distinct groups by following World Bank’s country classification scheme i.e. low-income, lower-middle income, upper- middle high-income hypothesized relationship between spending, verified employing residual based (Pedroni cointegration test) maximum likelihood (Fisher- Johansen panel cointegration) test co-integration. obtained result reveal that plausible inter-relationship carbon-related emissions consequent rise found to be existing more prominently upper-middle countries, relative low- income where proposed relationships are less substantial levels. For former series bears positive statistically significant coefficient value 1.14 0.05, respectively. Energy other hand turns out even important determinant expenditure. upper-middle- groups, negative 0.20 0.22, respectively, with high degree statistical significance. implies managing up optimal may contribute positively reducing growing public private spending.