Skip to main content

Advertisement

Log in

The relationship between renewable energy use and health expenditures in EU countries

  • Original Paper
  • Published:
The European Journal of Health Economics Aims and scope Submit manuscript

Abstract

With the increased attention on renewable energy use especially in the European Union, it also becomes worthwhile to investigate the positive effects of renewable energy use on human development measures. As non-renewable energy use may contribute to health hazards, it makes sense to think that increased renewable energy use may positively influence public health or increase the funds available for health expenditures. This research therefore aims to explore the relationship between renewable energy use and health expenditures for 27 European Union member countries. The analysis indicates that the relationship is unidirectional for countries hat joined the EU before 2000 and bidirectional for those that joined after the year 2000. Also a country by country analysis indicates the direction of the relationship for individual countries for both groups. This research is unique in the sense that the causality analysis is separately conducted fort the two groups of EU members labeled as pre-2000 and post-2000.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Aceleanu, M.I., Șerban, A.C., Pociovălișteanu, D.M., Dimian, G.C.: Renewable energy: a way for a sustainable development in Romania. Energy Sources Part B Econ. Plan. Policy 12(11), 958–963 (2017). https://doi.org/10.1080/15567249.2017.1328621

    Article  Google Scholar 

  2. Aldakhil, A.M., Nassani, A.A., Awan, U., Abro, M.M.Q., Zaman, K.: Determinants of green logistics in BRICS countries: an integrated supply chain model for green business. J. Clean. Prod. 195, 861–868 (2018). https://doi.org/10.1016/j.jclepro.2018.05.248

    Article  Google Scholar 

  3. Apergis, N., Ben Jebli, M.: Does Renewable Energy Consumption And Health Expenditure Decrease Carbon Dioxide Emissions. Evidence for Sub-Saharan Africa Countries. MPRA Paper, 68294. https://mpra.ub.uni-muenchen.de/68294/ (2015)

  4. Apergis, N., Jebli, M.B., Youssef, S.B.: Does renewable energy consumption and health expenditures decrease carbon dioxide emissions? Evidence for Sub-Saharan Africa Countries. Renew. Energy 127, 1011–1016 (2018). https://doi.org/10.1016/j.renene.2018.05.043

    Article  Google Scholar 

  5. Baltagi, B.H., Feng, Q., Kao, C.: A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model. J. Econom. 170(1), 164–177 (2012)

  6. Baltas, A.E., Dervos, A.N.: Special framework for the spatial planning & the sustainable development of renewable energy sources. Renew. Energy 48, 358–363 (2012). https://doi.org/10.1016/j.renene.2012.05.015

    Article  Google Scholar 

  7. Baz, K., Cheng, J., Deyi, X., Abbas, K., Ali, I., Ali, H., Fang, C.: Asymmetric impact of fossil fuel and renewable energy consumption on economic growth: a nonlinear technique. Energy (2021). https://doi.org/10.1016/j.energy.2021.120357

    Article  Google Scholar 

  8. Bilgen, S., Sarıkaya, İ: Energy conservation policy and environment for a clean and sustainable energy future. Energy Sources Part B Econ. Plan. Policy 13(3), 183–189 (2018). https://doi.org/10.1080/15567249.2017.1423412

    Article  Google Scholar 

  9. Breusch, T.S., Pagan, A.R.: The Lagrange multiplier test and its applications to model specification in econometrics. Rev. Econ. Stud. 47(1), 239–253 (1980)

  10. Caruso, G., Colantonio, E., Gattone, S.A.: Relationships between renewable energy consumption, social factors, and health: a panel vector auto regression analysis of a cluster of 12 EU countries. Sustainability 12(7), 2915 (2020). https://doi.org/10.3390/su12072915

    Article  Google Scholar 

  11. Chaabouni, S., Saidi, K.: The dynamic links between Carbon Dioxide (CO2) emissions, health spending and GDP growth: a case study for 51 countries. Environ. Res. 158, 137–144 (2017). https://doi.org/10.1016/j.envres.2017.05.041

    Article  CAS  PubMed  Google Scholar 

  12. Charfeddine, L.: The impact of energy consumption and economic development on ecological footprint and CO2 emissions: evidence from a Markov switching equilibrium correction model. Energy Econ. 65, 355–374 (2017). https://doi.org/10.1016/j.eneco.2017.05.009

    Article  Google Scholar 

  13. Çetin, M.A.: BRICS-T Ülkelerinde Sağlık Harcamaları ile Yenilenebilir Enerji Tüketimi Arasındaki Uzun Dönemli İlişki: Panel ARDL Bulguları. In: ICPESS (International Congress on Politic, Economic and Social Studies) (No. 5) (2018)

  14. Çomaklı, K., Kaya, M., Şahin, B.: Renewable energy sources for sustainable development in Turkey. Energy Explor. Exploit. 26(2), 83–110 (2008). https://doi.org/10.1260/014459808785260517

    Article  Google Scholar 

  15. Dumitrescu, E.I., Hurlin, C.: Testing for granger non-causality in heterogeneous panels. Econ. Model. 29(4), 1450–1460 (2012). https://doi.org/10.1016/j.econmod.2012.02.014

    Article  Google Scholar 

  16. Eurostat. Share of Energy from Renewable Sources. https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=nrg_ind_ren&lang=en (2020) Accessed 5 Sept 2020

  17. Feng, Y., Yu, X., Chiu, Y.H., Lin, T.Y.: Energy efficiency and health efficiency of old and new EU Member States. Front. Public Health 8, 168 (2020). https://doi.org/10.3389/fpubh.2020.00168

    Article  PubMed  PubMed Central  Google Scholar 

  18. Fotourehchi, Z., Çalışkan, Z.: Is it possible to describe a Kuznets curve for health outcomes? An empirical investigation. Panoeconomicus 65(2), 227–238 (2018). https://doi.org/10.2298/PAN150814011F

    Article  Google Scholar 

  19. Giray, F., Çimen, G.: Sağlık Harcamalarının Düzeyini Belirleyen Faktörler: Türkiye ve OECD Ülkeleri Analizi. Sayistay Dergisi 111, 143–171 (2018)

    Google Scholar 

  20. Granger, C.W.: Investigating causal relations by econometric models and cross-spectral methods. Econom.: J. Econom. Soc. 424–438 (1969)

  21. Karasoy, A., Demirtaş, G.: Sağlık Harcamalarının Belirleyicileri Üzerine Bir Uygulama: Çevre Kirliliği ve Yönetişimin Etkilerinin İncelenmesi. Itobiad J. Hum. Soc. Sci. Res. 7(3), 1917–1939 (2018). https://doi.org/10.15869/itobiad.449943

    Article  Google Scholar 

  22. Kaygusuz, K., Yüksek, Ö., Sari, A.: Renewable energy sources in the European union: markets and capacity. Energy Sources Part B Econ. Plan. Policy 2(1), 19–29 (2007). https://doi.org/10.1080/15567240500400887

    Article  Google Scholar 

  23. Khan, S.A.R.: The role of renewable energy, public health expenditure, logistics and environmental performance in economic growth: an evidence from structural equation modelling. Preprints (2019). https://doi.org/10.20944/preprints201901.0102.v1

    Article  Google Scholar 

  24. Khan, A., Hussain, J., Bano, S., Chenggang, Y.: The repercussions of foreign direct investment, renewable energy and health expenditure on environmental decay? An econometric analysis of B&RI countries. J. Environ. Plan. Manage. 63(11), 1965–1986 (2019). https://doi.org/10.1080/09640568.2019.1692796

    Article  Google Scholar 

  25. Koengkan, M., Fuinhas, J.A., Silva, N.: Exploring the capacity of renewable energy consumption to reduce outdoor air pollution death rate in Latin America and the Caribbean region. Environ. Sci. Pollut. Res. 28(2), 1656–1674 (2021). https://doi.org/10.1007/s11356-020-10503-x

    Article  Google Scholar 

  26. Kónya, L.: Exports and growth: granger causality analysis on OECD countries with a panel data approach. Econ. Model. 23(6), 978–992 (2006). https://doi.org/10.1016/j.econmod.2006.04.008

    Article  Google Scholar 

  27. Kousksou, T., Allouhi, A., Belattar, M., Jamil, A., El Rhafiki, T., Arid, A., Zeraouli, Y.: Renewable energy potential and national policy directions for sustainable development in Morocco. Renew. Sustain. Energy Rev. 47, 46–57 (2015). https://doi.org/10.1016/j.rser.2015.02.056

    Article  Google Scholar 

  28. Kramarz, T., Park, S., Johnson, C.: Governing the dark side of renewable energy: a typology of global displacements. Energy Res. Soc. Sci. 74, 101902 (2021). https://doi.org/10.1016/j.erss.2020.101902

    Article  Google Scholar 

  29. Liu, Z.: China’s strategy for the development of renewable energies. Energy Sources Part B Econ. Plan. Policy 12(11), 971–975 (2017). https://doi.org/10.1080/15567249.2017.1336813

    Article  CAS  Google Scholar 

  30. Machol, B., Rizk, S.: Economic value of US fossil fuel electricity health impacts. Environ. Int. 52, 75–80 (2013). https://doi.org/10.1016/j.envint.2012.03.003

    Article  PubMed  Google Scholar 

  31. OECD. The Economic Consequences of Outdoor Air Pollution. https://www.oecd.org/environment/indicators-modelling-outlooks/Policy-Highlights-Economic-consequences-of-outdoor-air-pollution-web.pdf (2016) Accessed 3 Sept 2020

  32. Owusu, P.A., Asumadu-Sarkodie, S.: A review of renewable energy sources, sustainability issues and climate change mitigation. Cogent Eng. 3(1), 1–14 (2016). https://doi.org/10.1080/23311916.2016.1167990

    Article  Google Scholar 

  33. Öndes, H.: Yenilenebilir Enerji Tüketimi ve Sağlık Harcamaları Karbondioksit Emisyonunu Azaltır mı? AB Ülkeleri Örneği. Business and Organization Research İzmir (International Conference). İzmir. 4–7 September. Yasar University (2019)

  34. Özmen, İ., Mucuk, M., Özcan, G., ve Gerçeker, M.: G7 Ülkelerinde Karbon Salınımı Ve Sağlık Harcamaları Etkileşimi: Bootstrap Panel Nedensellik Testi. ENSCON'19, Autumn, International Congress of Energy, Economy and Security, pp. 85–95. (2019)

  35. Pablo-Romero, M.D.P., Román, R., Sánchez-Braza, A., Yñiguez, R.: Renewable Energy, Emissions, and Health.In: Renewable Energy: Utilisation and System Integration, 173. IntechOpen: Rijeka (2016) https://doi.org/10.5772/59389

  36. Panwar, N.L., Kaushik, S.C., Kothari, S.: Role of renewable energy sources in environmental protection: a review. Renew. Sustain. Energy Rev. 15(3), 1513–1524 (2011). https://doi.org/10.1016/j.rser.2010.11.037

    Article  Google Scholar 

  37. Pesaran, M.H.: General diagnostic tests for cross-sectional dependence in panels. Empir. Econ. 1–38 (2004)

  38. Pesaran, M.H.: A simple panel unit root test in the presence of cross-section dependence. J. Appl. Economet. 22(2), 265–312 (2007). https://doi.org/10.1002/jae.951

    Article  Google Scholar 

  39. Pesaran, M.H., Ullah, A., Yamagata, T.: A bias-adjusted LM test of error cross-section independence. Econom. J. 11(1), 105–127 (2008)

  40. Pesaran, M.H., Yamagata, T.: Testing slope homogeneity in large panels. J. Econ. 142(1), 50–93 (2008). https://doi.org/10.1016/j.jeconom.2007.05.010

    Article  Google Scholar 

  41. Polatidis, H., Haralambopoulos, D.A., Munda, G., Vreeker, R.: Selecting an appropriate multi-criteria decision analysis technique for renewable energy planning. Energy Sources Part B 1(2), 181–193 (2006). https://doi.org/10.1080/009083190881607

    Article  Google Scholar 

  42. Raeissi, P., Harati-Khalilabad, T., Rezapour, A., Hashemi, S.Y., Mousavi, A., Khodabakhshzadeh, S.: Effects of air pollution on public and private health expenditures in Iran: a time series study (1972–2014). J. Prev. Med. Public Health 51(3), 140–147 (2018). https://doi.org/10.3961/jpmph.17.153

    Article  PubMed  PubMed Central  Google Scholar 

  43. Sasmaz, M.U., Sakar, E., Yayla, Y.E., Akkucuk, U.: The relationship between renewable energy and human development in OECD countries: a panel data analysis. Sustainability 12(18), 7450 (2020). https://doi.org/10.3390/su12187450

    Article  Google Scholar 

  44. Sileem, H.H.M.: Health expenditure, climate changes and corruption in the MENA region: a granger causality approach. J. Afr. Dev. 18(2), 61–72 (2016)

    Google Scholar 

  45. Taghizadeh-Hesary, F., Rasoulinezhad, E., Yoshino, N., Chang, Y., Taghizadeh-Hesary, F., Morgan, P.J.: The Energy-Pollution-Health Nexus: A Panel Data Analysis of Low-And Middle-Income Asian Nations. ADBI Working Paper No.1086 (2020)

  46. Treyer, K., Bauer, C., Simons, A.: Human health impacts in the life cycle of future European electricity generation. Energy Policy 74, 31–44 (2014). https://doi.org/10.1016/j.enpol.2014.03.034

    Article  Google Scholar 

  47. Ullah, I., Rehman, A., Khan, F.U., Shah, M.H., Khan, F.: Nexus between trade, CO2 emissions, renewable energy, and health expenditure in Pakistan. Int. J. Health Plann. Manage. 35(4), 818–831 (2020). https://doi.org/10.1002/hpm.2912

    Article  PubMed  Google Scholar 

  48. Wang, Z., Asghar, M.M., Zaidi, S.A.H., Wang, B.: Dynamic linkages among CO2 emissions, health expenditures, and economic growth: empirical evidence from Pakistan. Environ. Sci. Pollut. Res. 26(15), 15285–15299 (2019). https://doi.org/10.1007/s11356-019-04876-x

    Article  CAS  Google Scholar 

  49. Westerlund, J., Edgerton, D.L.: A panel bootstrap cointegration test. Econ. Lett. 97(3), 185–190 (2007). https://doi.org/10.1016/j.econlet.2007.03.003

    Article  Google Scholar 

  50. World Bank. Current Health Expenditure (% of GDP), https://databank.worldbank.org/reports.aspx?source=2&series=SH.XPD.CHEX.GD.ZS&country=EUU (2020) Accessed 5 Sept 2020

  51. Zellner, A.: An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. J. Am. Stat. Assoc. 57(298), 348–368 (1962)

  52. Zong, H., Cao, Y., Liu, Z.: Energy security in group of seven (G7): a quantitative approach for renewable energy policy. Energy Sources Part B Econ. Plan. Policy 13(3), 173–175 (2018). https://doi.org/10.1080/15567249.2017.1422053

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ulas Akkucuk.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Sasmaz, M.U., Karamıklı, A. & Akkucuk, U. The relationship between renewable energy use and health expenditures in EU countries. Eur J Health Econ 22, 1129–1139 (2021). https://doi.org/10.1007/s10198-021-01312-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10198-021-01312-1

Keywords

JEL Classification

Navigation