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Greenhouse gas emissions, economic globalization, and health expenditures nexus: does population aging matter in emerging market economies?

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Abstract

Papers on population aging and the effects of environmental quality on health expenditure have critical policy consequences. However, findings in the relevant literature are mixed, and papers generally focus on developed countries. To provide new information to the literature, this paper examines the impact of globalization, economic growth, greenhouse gas emissions, and population aging on health expenditures in emerging market economies with annual data for the period 2000 to 2018. The paper follows a second-generation advanced panel data method that considers cross-sectional dependency. The estimation results reveal that population aging, economic growth, and greenhouse gas emissions have an increasing effect on health expenditures, while globalization has a decreasing effect. Furthermore, one-way causality running from population aging to health expenditures is confirmed, while a feedback causality relationship is observed between health expenditures and other indicators (globalization, economic growth, and greenhouse gas emissions). After all, the outputs of this paper can provide critical policy implications about the relationships between aging, globalization, air quality, and health expenditures in developing countries.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Abbreviations

GHG:

Greenhouse gas emissions

CO2:

Carbon dioxide emissions

AMG:

Augmented mean group

PCSE:

Panel-corrected standard error

FGLS:

Feasible generalized least squares

FMOLS:

Fully modified ordinary least squares

OECD:

Organisation of Economic Co-operation and Development

WHO:

World Health Organization

AI:

Aging index

AP:

Ageing population

BRICS:

Brazil, Russia, India, China, and South Africa

ECOF:

Ecological footprint

POP65 + :

People aged 65 and over

TR:

Trade openness

STIRPAT:

Stochastic Impacts by Regression on Population, Affluence and Technology

ECO:

Economic openness

FDI:

Foreign direct investment

GLO:

Globalization

WDI:

World Development Indicators

PMG:

Pooled mean group

CD:

Cross-sectional dependence

HDI:

Human development index

IND:

Industrialization

LE:

Life expectancy

HE:

Health expenditure

AIC:

Akaike information criterion

OLS:

Ordinary least squares method

NOEP:

Number of elderly people

URB:

Urbanization

MSC:

Emerging Market Index

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Authors and Affiliations

Authors

Contributions

All authors contributed to the study conception and design. Conceptualization, material preparation, data collection, and analysis were performed by Eyyup Ecevit, Murat Cetin, and Emrah Kocak. The first draft of the manuscript was written by Rabia Dogan and Ozge Yildiz, and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Emrah Kocak.

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This manuscript does not contain any studies with human participants or animals performed by any of the authors.

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Competing interests

The authors declare no competing interests.

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Responsible Editor: Arshian Sharif

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Ecevit, E., Cetin, M., Kocak, E. et al. Greenhouse gas emissions, economic globalization, and health expenditures nexus: does population aging matter in emerging market economies?. Environ Sci Pollut Res 30, 29961–29975 (2023). https://doi.org/10.1007/s11356-022-24274-0

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  • DOI: https://doi.org/10.1007/s11356-022-24274-0

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