It is an overwhelming concern that increases in global average temperature lead to serious consequences on the natural environment in the form of deteriorating water resource quality and damaging healthcare sustainability agenda. The sustainable innovation forum (COP21) shows a high concern on climate changes and suggested to reduce global average temperature less than 2 °C. The study brings an idea from the stated theme and analyzed the relationship between climate change and water resource quality in order to redesign economic and environmental policies to improve water quality and healthcare sustainability in the context of Pakistan. The country has serious issues regarding the provision of safe drinking water, improved water resource quality, and healthcare sustainability, which can be achieved by sustainable policies to handle the extreme temperature in Pakistan. The study employed simultaneous generalized method of moments (GMM) technique in order to estimate parameters of the study during the period of 1980-2016. The results show that energy demand and industry value added substantially decrease water resource quality (WRQ), while agriculture value added and per capita income significantly increase WRQ in a country. The other regression apparatus, where health expenditures serve as the response variable, shows that average temperature, industry value added, population growth, and foreign direct investment (FDI) inflows significantly increase healthcare expenditures while WRQ has a negative impact on healthcare expenditures in a country. The final regression model shows that average temperature and per capita income decrease, while WRQ and industrial value added increase mortality rate in a country. The overall results confirm that WRQ affected by climate change, energy demand, and population growth that need sustainable water resource policies in order to achieve long-term sustained growth. The climate actions required more policy instruments to combat environmental challenges that should support healthcare sustainability agenda across the globe.
Keywords: Agriculture-industrial value added; Climate change; Healthcare expenditures; Pakistan; Water resource quality.