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The nexus among CO2 emission, health expenditure and economic development in the OECD countries: New insights from a cross-sectional ARDL model

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Abstract

To find a way to realize sustainable development, this paper applied a cross-sectional ARDL (CS-ARDL) method to explore the interaction between carbon emissions, economic development, and health care expenditure for OECD countries. Firstly, we conduct a cross-sectional test to check whether the data is confronted with this issue. Secondly, we conduct a panel unit root test and cointegration test to confirm whether the ARDL-based method is suitable for our data. Thirdly, we analyze the results and provide possible explanations. Lastly, we conduct a short-term causality test to detect the connection between different variables. The main conclusion of our study includes: 1) Health care is a necessity in OECD countries. 2) Environmental deterioration places a heavy burden on health care expenditure in OECD countries. 3) Health care expenditure of last year negatively affects health care expenditure. 4) There is a short-run causality relationship from CO2, economic development, and dependency rate of youth to health care expenditure in OECD countries. Related policy proposals are provided according to our analysis of the results.

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Data availability

The data is publicly available, and mainly collected from the OECD Health Database, the BP Statistical Review, the World Bank online database and the IEA’s database.

Notes

  1. Carbon emissions refer to CO2 emissions in this paper.

  2. The sample countries are as follows: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Japan, Korea, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United States.

  3. The data is collected by the authors by searching online database—World Bank Open Data. The other data in this paragraph is also collected in World Bank Open Database.

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Funding

This work was supported by the National Natural Science Foundation of China [No. 71904111].

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Contributions

Cheng Cheng: Data curation, Software, and Writing; Xiaohang Ren: Validation, Software, and Writing; Mingming Zhang: Writing and Software; Zhen Wang: Validation and Writing.

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Correspondence to Xiaohang Ren.

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The authors declare no competing interests.

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Cheng, C., Ren, X., Zhang, M. et al. The nexus among CO2 emission, health expenditure and economic development in the OECD countries: New insights from a cross-sectional ARDL model. Environ Sci Pollut Res 31, 16746–16769 (2024). https://doi.org/10.1007/s11356-024-32081-y

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  • DOI: https://doi.org/10.1007/s11356-024-32081-y

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